Edition:
India

Mahindra Says Lockdown Caused Loss of 87k Vehicles, 30k Tractors in Sales in June-Qtr


Wednesday, 3 Jun 2020 

June 3 (Reuters) - Mahindra and Mahindra Ltd ::ESTIMATED QUANTUM OF LOSS DUE TO COVID19 LOCKDOWN FOR Q1 F21 IS AROUND 87,000 VEHICLES AND AROUND 30,000 TRACTORS.ESTIMATED QUANTUM OF LOSS DUE TO COVID19 LOCKDOWN FOR MARCH 2020 IS AROUND 23,400 VEHICLES & 14,700 TRACTORS.EXPECTS TO MITIGATE COVID HIT BY REDUCING VARIABLE AND FIXED COSTS AND AFTER ABSORBING ALL IDLE OVERHEADS CAUSED BY LOCKDOWN.PRODUCTION AT VENDORS END IS RESUMING GRADUALLY; ALMOST 100% OF SUPPLIERS NOW OPERATIONAL.SUPPLIERS FACING CHALLENGES IN TERMS OF WORKING CAPITAL, MANPOWER, LIMITED WORKING HOURS.EXPECTS QUICKER RECOVERY IN RURAL INDIA FOR AUTO SECTOR COMPARED WITH URBAN SEGMENT.EXPECT TRACTOR DEMAND TO SHOW 'GOOD IMPROVEMENT' IN SHORT-TERM DUE TO RECORD RABI CROP, OTHER FACTORS.IMPACT OF COVID-19 IS NOT COVERED UNDER INSURANCE.