July auto sales: SML Mahindra sales rise 12%, Escorts Kubota records 22% growth

Escorts Kubota and SML Mahindra reported healthy year-on-year growth in July sales, aided by improving rural demand and continued strength in the commercial vehicle and construction equipment segments.

Escorts Kubota's Agri Machinery Business sold 8,731 tractors in July, up 22% from 7,154 units a year ago. Domestic tractor sales rose 23.7% to 8,194 units from 6,624 units, while exports edged up 1.3% to 537 units from 530 units.

The company said improved rainfall during July helped narrow the cumulative rainfall deficit to 14-15%, while Kharif sowing gathered pace, supporting rural demand and sentiment. It, however, said the progress of the monsoon and Kharif crop, a delayed festive season in the third quarter, input cost pressures and a high base in the coming months remain key factors to watch.

Escorts Kubota's Construction Equipment Business also reported strong growth, with sales rising 49.2% year-on-year to 534 machines in July from 358 units a year earlier. The company attributed the growth to a lower base following last year's implementation of BSV emission norms, sustained infrastructure activity, continued government capital expenditure, a robust project pipeline and increasing export opportunities.

It added that geopolitical developments remain a key monitor due to their potential impact on business sentiment and commodity costs.

Meanwhile, SML Mahindra's total vehicle sales increased 12% year-on-year to 1,603 units in July from 1,427 units in the corresponding month last year.

Passenger vehicle sales climbed 21% to 1,186 units from 978 units, offsetting a 7% decline in cargo vehicle sales, which fell to 417 units from 449 units.

For the April-July period, SML Mahindra's cumulative sales rose 11% to 7,041 units from 6,353 units a year earlier. Passenger vehicle sales increased 19% to 5,515 units, while cargo vehicle sales declined 12% to 1,526 units.