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Mahindra Sees Sales Surge Post-GST Cuts
9 Jan
Summary
- Mahindra's Q3 production rose 25% year-on-year.
- Sales increased by 27% following GST rate reductions.
- GST reform significantly lowered indirect taxes on models.
Mahindra & Mahindra experienced significant growth in its third quarter, with production and sales surging by over 20%. Production saw a substantial 25% increase year-on-year, reaching 68,992 units in the October-December period. Sales followed suit with a robust 27% jump to 85,501 units, indicating sustained consumer demand.
This positive performance is largely a result of the government's GST 2.0 reforms enacted in September, which significantly reduced tax rates on automobiles. Mahindra committed to passing these benefits directly to customers across its entire ICE SUV range. Models such as the Bolero/Neo and XUV3XO witnessed notable decreases in their total indirect tax burdens.
Several other popular models, including the Scorpio Classic, Scorpio-N, and XUV700, also benefited from these revised GST rates, transitioning to lower consolidated tax percentages. This strategic move by the government has effectively stimulated the automotive market, contributing to Mahindra's impressive quarterly results, despite a marginal 9% dip in exports.
