Hyundai, Mahindra Maintain Strong Sales Momentum in May Despite Supply Challenges

Mumbai, June 1: India’s automobile sector continued to witness healthy demand in May, with leading manufacturers Hyundai Motor India Limited and Mahindra & Mahindra reporting robust sales growth driven largely by strong demand for SUVs and utility vehicles.

Hyundai Motor India posted domestic sales of 47,837 units in May, registering a 9.1 per cent increase compared to the same month last year. Supported by exports of 13,300 units, the company's total sales reached 61,137 units, reflecting a 4.1 per cent year-on-year growth.

Mahindra & Mahindra delivered an even stronger performance, recording overall automobile sales of 99,636 vehicles during the month, including exports. The figure represents a 20 per cent increase over May last year.

The company's utility vehicle segment remained a key growth driver, with domestic sales rising 11 per cent year-on-year to 58,021 units. Including exports, total utility vehicle sales stood at 59,573 units.

Mahindra also reported solid growth in its commercial vehicle business. Domestic commercial vehicle sales reached 24,079 units in May, marking a 19 per cent increase from the corresponding period last year.

Exports were another bright spot for the company, surging 37 per cent year-on-year to 5,000 units.

According to Nalinikanth Gollagunta, customer demand across the company's product portfolio remained strong. However, he noted that supply-chain disruptions caused by manpower shortages at some supplier facilities continued to pose challenges.

The latest sales numbers underscore the resilience of India's passenger vehicle market, particularly in the SUV and utility vehicle segments, which continue to fuel growth for automakers despite supply-side constraints.

Despite the encouraging sales figures, investor sentiment remained cautious. Shares of Hyundai Motor India Limited fell as much as 1.48 per cent during early trading on the BSE, touching an intraday low of Rs 1,900. The stock's 52-week range stands between Rs 1,658.45 and Rs 2,889.65.

Similarly, shares of Mahindra & Mahindra declined 1.47 per cent to Rs 2,990 during intraday trade. Over the past year, the stock has traded between Rs 2,896.30 and Rs 3,840.

The May sales performance suggests that strong consumer demand continues to support the Indian automobile industry, even as manufacturers navigate supply-chain pressures and market uncertainties.

With inputs from IANS