Kolkata: Leading automobile manufacturer Mahindra said that demonetization had hit the sales of three-wheelers as customers were not able to arrange the cash required for down payment.
"Since November, sales of three-wheelers had taken a beating. People were finding it difficult to arrange the cash required for down payment", Veejay Nakra, Sr VP (sales) of Mahindra said.
Manhindra, which manufactures three-wheelers under the brand 'Alpha', Thursday launched its new range of small commercial vehicles (SCV) under the 'Supro' brand between 700 kg and 1050 kg payload segment, where it was enjoying a market share of around 10 per cent.
He said that it was expected that sales of three-wheelers would pick up from the first quarter of the next financial year when money circulation improved.
On other segments, he said that demonetization had little impact on sales.
The official said Mahindra had invested Rs 135 crore on developing the 'Supro' platform which had a range of 11 products in that payload range.
"In the Supro payload range, we are trying to gain market share as compared to our nearest competitor (read Tata Ace)", he said.
In other payload ranges below 700 kg and above 1050 kg, Mahindra was clearly the market leader, he said.
The Supro platform has a manufacturing capacity of 60,000 units per annum, he said.