M&M tops domestic utility vehicle segment

Mahindra & Mahindra’s (M&M) has topped the domestic utility vehicle segment with three of its models taking the top slots, in April 2009.According to reports, M&M ’s sales of its models, the Mahindra Xylo, Bolero and Scorpio, crossed the sales of Toyota’s Innova, and Tata Motors’ Sumo and Safari models.

The Mahindra Xylo, Bolero and Scorpio garnered a combined market share of 65 per cent during the month of April 2009. 

The number, when compared with 47 per cent a year ago, is significant considering the fact that now many popular models are available in the utility vehicle segment.

The Economic times quoted  Pawan Goenka, president of M&M’s automotive division, as saying, “There is a lot of pent-up demand following the slowdown in October-December 2008.”

We will see the same momentum for the next few months. The fiscal stimulus and lower interest rates have fuelled consumer purchases,” he added. 

M&M saw a 16 per cent jump in April sales to 22,617 units, aided by the elections which boosted demand for its utility vehicles.

M&M sold 6,000 units of the Bolero, 3,509 units the newly-launched Mahndra Xylo, and 3,100 units of the Scorpio in April 2009. 

In comparison, Toyota sold 2,834 units of the Toyota Innova, 1642 units of the Tata Sumo, including 174 units of Grande, and 774 units of the Safari. 

The Mahindra Xylo, that was launched in January 2009, has recorded its highest monthly sales, in April 2009.

The company has delivered over 10,000 Xylos and recently raised the price of the vehicle by around Rs 10,000 till now, The Economic Times has reported.

A related report said sedans and SUVs such as Ford Fiesta, Maruti SX4, Hyundai Verna, Honda Accord, Scorpio and Innova may get cheaper with the heavy industry ministry recommending removal of the additional excise duty slapped on vehicles above 1500cc. 

The additional duty of Rs 15,000 on vehicles above 1,500cc, and Rs 20,000 on vehicles above 2000cc, was imposed by the government, in June 2008 to control spiralling oil prices. 

If the additional duty is nixed, it will benefit companies like M&M, Honda, Ford, Skoda and almost all luxury carmakers like BMW, Audi and Mercedes Benz.