Mahindra & Mahindra, India’s leading company, has reported a decline in its sales for the first time in 3 years in August. The maker of the Scorpio SUV said it has reduced the volume of goods sent to dealers as it awaits the government’s decision on a lower consumption tax.
Mahindra’s SUV sales declined 9% last month but have so far registered a growth of 15% in the financial year to March 2025.
Nomura analysts said that even before the decision to cut major taxes, automotive dealers had reduced stock for August so as not to accumulate high-priced stock. At the same time, buyers are postponing purchases during the festive season as they expect prices to fall. Buyers are waiting for prices to fall.
India’s Goods and Services Tax (GST) Council is scheduled to have a meeting later this week. The meeting will discuss the most significant reforms since the launch of the tax system. The proposal was announced by Indian Prime Minister Narendra Modi last month.
Despite the decline in August, Mahindra & Mahindra has defied the broader industry slowdown in the world’s third-largest car market, thanks to the rapidly growing demand for Mahindra’s new SUV and EVs.
