Exports dropped by 45 per cent to 1,467 units as against 2,668 units in the year-ago month.
In the passenger vehicles segment, which includes UVs, cars and vans, it sold 11,025 vehicles in July this year, against 16,831 vehicles in the same month last year, down 34 per cent.
In the commercial vehicles segment, the company sold 13,103 vehicles as against 15,969 units earlier, a dip of 18 per cent.
"At Mahindra, we are happy to see a growing trend in our overall vehicle sales, buoyed by the continuing revival in demand, primarily in rural and semi urban India," Veejay Ram Nakra, Chief Executive Officer, Automotive Division, M&M Ltd said.
It is encouraging to see that the enquiry and booking levels in July are significantly higher compared to June, both for utility vehicles and small commercial vehicles, he added.
"As we ramp up production, the biggest challenge is on the supply side and working around these challenges is our top priority," Nakra said.