Indian auto company Mahindra & Mahindra produced 10,831 units of automobiles in July, down 52pc from the prior year.
Production remained subdued in July on the back of COVID-19 supply disruptions and low demand. The company sales in July slipped 36pc from the prior year to 25,678 units but rose 33pc from the prior month.
Increase in production could be in focus given the improvement in overall sales in India and export markets. This will drive demand for steel, aluminium, zinc, lead, and other metals that are used in manufacturer of cars.
The company clocked its first ever zero sales in the month of April, post which the industry is finding its way back, according to a company statement. Mahindra’s key brands which have a strong rural bias witnessed string demand in the month of June and July. The company had said that low pipeline inventory and supply chain disruptions would hamper production ramp-up leading to lower sales.
Another car manufacturer Maruti Suzuki plans to produce around 160,000-170,000 vehicles in October and Hyundai is likely to raise production to 58,000-60,000 vehicles. Auto companies are focusing on speeding up production to meet the festive season’s demand.
Mahindra & Mahindra caters to rural sector with tractor production which is driving auto demand in India post COVID-19 lockdown. The company’s automotive segment also produces light weight commercial cars, heavy weight commercial vehicles, two-wheelers, tractors, pick-ups and SUVs.