May Auto Sales: Mahindra & Mahindra beats estimates across segments; Here's why the stock is down

Mahindra & Mahindra Ltd. (M&M), the automotive and farm-equipment manufacturer, reported its sales figures for the month of May, which were better-than-expectations across both its segments.

However, the stock is trading with losses on Monday, June 1, after the numbers were disclosed.

M&M Automotive

M&M's automotive division saw total sales of 99,636 units, higher than the CNBC-TV18 poll estimate of 96,400 units.

Within this, Utility Vehicles saw a growth of 11%, Commercial Vehicles grew by 19%, while trucks and busses (> 3.5T) grew by 18% from last year.

"The sustained demand across our portfolio continues, constrained by supply chain challenges due to manpower shortages at select suppliers," Nalinikanth Gollagunta, the CEO of M&M's Automotive Division stated.

The CV industry continues to face near-term headwinds, driven by elevated input costs and higher diesel prices, according to Vinod Sahay, the Executive Chairman of SML and President of Aerospace, Advanced Technologies, Trucks, Buses & CE. He also added that the outlook remains cautious as cost pressures and macro uncertainties continue to weigh on industry sentiments.

M&M Farm Equipment

The company's farm equipment business grew by 23% from last year in May to 49,695 units. The figure also includes exports of 1,850 units.

"This high growth was driven by timely completion of Rabi harvesting & favorable terms of trade for farmers. In the export markets, we have sold 1,850 tractors, a growth of 7% over last year," Veejay Nakra, President of M&M's Farm Equipment business said.

Shares of Mahindra & Mahindra are trading 1.4% lower at ₹3,003.9. The stock is now down 20% so far in 2026.