Mahindra & Mahindra Ltd., reported a sharp reversal in August 2025 sales momentum, with total vehicle sales reaching 75,901 units marking flat growth compared to the same period last year, while its core SUV segment experienced a notable decline following record July performance.
Sharp Turnaround After Strong July Performance
The company’s utility vehicles segment sold 39,399 units in the domestic market during August, representing a 9% year-over-year decline. Including exports, total UV sales stood at 40,846 vehicles for the month.
This marks a dramatic shift from July’s exceptional performance when Mahindra sold 49,871 SUVs with 20% growth and total volumes of 83,691 vehicles with 26% growth. The month-on-month decline of over 10,000 SUV units highlights the impact of strategic decisions ahead of anticipated policy changes.
GST Changes Drive Strategic Inventory Management
Nalinikanth Gollagunta, CEO of the Automotive Division at M&M Ltd., attributed the decline to strategic inventory management ahead of anticipated GST rate changes. “August witnessed relatively robust demand in the SUV segment amidst anticipated GST rate changes,” Gollagunta explained.
The company made a conscious decision to reduce wholesale billing to minimize dealer inventory levels. “We consciously decided to bring down the wholesale billing to minimize the stock being carried by our dealers,” he noted, expressing optimism about upcoming GST rationalization serving as a demand driver through the festive season.
Commercial Vehicles and Three-Wheelers Sustain Growth
Despite the passenger vehicle slowdown, Mahindra’s commercial vehicle segment demonstrated resilience with domestic sales of 22,427 units. The LCV 2T-3.5T category showed particularly strong performance, growing 13% year-over-year to 19,502 units, while the smaller LCV segment (<2T) remained nearly flat with a marginal 1% decline.
The three-wheeler segment, including electric variants, continued its upward trajectory with 13% growth, reaching 10,527 units compared to 9,326 units in August 2024. This segment has shown remarkable year-to-date growth of 33%, indicating strong demand in the last-mile connectivity market.
Export Business Shows Promise
Mahindra’s export operations continued their upward trajectory, with total exports reaching 3,548 units in August 2025, representing a 16% increase over the previous year. Year-to-date export figures show even stronger performance with 37% growth.
The company’s electric vehicle segment showed exceptional growth, with Mahindra selling 3,495 electric SUVs in August 2025, marking a massive 937% year-over-year increase from just 337 units in the previous year.
Year-to-Date Performance Remains Strong
Despite the August decline, Mahindra’s year-to-date performance in the utility vehicles segment remains robust, with 241,337 units sold compared to 209,148 units in the same period last year, representing a healthy 15% growth.
Despite the monthly decline, Mahindra’s position as India’s second-largest passenger vehicle manufacturer remains secure. The company has consistently delivered strong SUV numbers throughout 2025, with popular models including the Scorpio N, XUV700, Thar, and the recently launched Thar Roxx driving volumes.
The August performance comes after a series of strong monthly results earlier in the year, including 48,048 SUVs in March (18% growth) and 50,420 units in February (19% growth), demonstrating the company’s overall market strength despite the temporary August adjustment.
Looking Ahead
The August performance comes after Mahindra achieved record annual sales performance and established itself as a major player in India’s SUV market with popular models across various price segments.
Gollagunta emphasized that despite the monthly decline, underlying market health remains strong, with “Mahindra reported 7.4% YoY growth in PV Vahan registrations” and 16% YoY growth in commercial vehicle registrations in the sub-7.5T LCV category.
The company appears optimistic about the upcoming festive season, banking on potential GST rationalization to drive demand recovery. With inventory levels now optimized following the strategic wholesale adjustment and strong year-to-date performance, Mahindra is positioning itself for a potential rebound in the crucial September-November period that traditionally sees increased vehicle purchases in India.
The contrast between July’s robust 26% total volume growth and August’s flat performance underscores how policy uncertainties can impact wholesale strategies, even when underlying consumer demand remains healthy.