Mahindra and Mahindra Clarifies XUV700 Price Cut, Denies Link To UP Hybrid Policy; Shares Drop 6.69%

The automobile manufacturer, Mahindra and Mahindra (M&M), on Wednesday (July 10), through an exchange filing clarified about the recent reports suggesting the link between the price reduction of its popular SUV, the XUV700, and the Uttar Pradesh (UP) government's hybrid vehicle policy.

In a statement issued by the company on the BSE filing, the company denied the connection between the two.

M&M in the regulatory filing stated, "We wish to inform the stock exchanges that there is no linkage between the price cut on certain XUV700 variants and UP EV/hybrid policy as reported by some media."

Moreover the company pointed out that the price cut of the XUV700 is a part of their business strategy which was first articulated during its analyst meeting on February 14, 2024.

"We kickstarted this effort with the launch of AX5 select variant in May 2024 and have also brought in a 3rd anniversary celebration variant for the higher-end XUV700 for a limited period of 4 months," M&M added.

New Pricing for XUV700

As part of the recent development, the news pricing are as follows:

The fully-loaded AX7 range of the XUV700 now starts at Rs 19.49 lakh, a reduction of over Rs 2 lakh.

Shares performance

Today, Mahindra and Mahindra (M&M) shares saw a significant decline, dropping over 7 percent. By the end of the trading day, M&M shares closed at Rs 2,729.90, reflecting a decrease of 6.69 percent.