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Mahindra quarterly profit falls 27% on weaker India automobile demand

Sales of SUVs and vans declined 21% in the second quarter

Mahindra posted a standalone net income of 12.13 billion rupees ($170 million) in the quarter ended in September.   © Reuters

MUMBAI (NewsRise) -- Mahindra and Mahindra's second-quarter profit slumped about 27% as a slowdown gripping the Indian automobile industry hurt the sport-utility vehicle maker's sales.

Demand for automobiles in Asia's third-largest economy has been declining amid a credit squeeze that marred consumer sentiment. A growing preference in cities for ride-hailing services such as Ola and Uber also affected sales of cars and SUVs, prompting automakers to slash production and cut jobs. Prime Minister Narendra Modi's government recently took several measures including lowering corporate taxes to help boost demand.

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