M&M share price today: Shares of Mahindra & Mahindra (M&M), the automotive and farm equipment flagship of the Mahindra Group, ended today's session with a drop of 6.6% at ₹2732 apiece, which was the worst intraday performance in the last four years. During the trade, the stock even tumbled nearly 8% to ₹2,697 apiece. This sharp sell-off in shares came after the company announced a temporary price cut of up to ₹2 lakh for its top XUV700 variant, the XUV700 AX7.
The new pricing has been introduced ahead of the XUV700's third anniversary and will be effective for a limited period of four months starting July 10.
This move aims to enhance sales and make the feature-rich AX7 trims more accessible to buyers. According to the carmaker, “The Mahindra XUV700’s fully loaded AX7 range, now starting at ₹19.49 lakh, will enable more people to experience its unmatched driving experience with cutting-edge premium features.”
For instance, the AX7 Petrol-MT 6-str is now priced at ₹19.69 lakh, down from ₹21.54 lakh, reflecting a reduction of ₹1.85 lakh.
In addition to M&M, Tata Motors has also implemented price cuts on its SUVs, the Harrier and Safari, effective until July 31.
Some analysts have attributed the company's price cuts to the recent waiver of registration fees for hybrid vehicles by the Uttar Pradesh government, while others believe it is due to an inventory build-up.
However, in today's exchange filing, the company clarified that there is no connection between the price reduction on certain XUV700 variants and the UP EV/hybrid policy and the jump in inventory.
The company also emphasized that these strategic actions were part of its annual business plan, based on previously realized material cost savings. Therefore, they do not anticipate any significant impact on their financials.
"The announced price cut of XUV700 is a continuation of our business strategy execution that was articulated in our February 14, 2024, analyst meeting, where we clearly outlined that “we have to bring the average price point down to drive growth." We kicked off this effort with the launch of the 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," the company said.
The company said the demand for the XUV700 continues to be robust, and it has increased its manufacturing capacity in line with demand.
"Our new XUV700 bookings in June were 23% higher than in May, and there is no concern about unsold inventory, as reported by certain news channels and newspapers. We firmly believe that hybrid are an interim and costly solution. And we have the readiness to offer high-quality products for all solutions that our consumers desire," the company informed investors.
Meanwhile, XUV700 became the fastest Mahindra vehicle to achieve 1.5L + vehicle sales within 30 months of launch. XUV 700 reinforced its superior Sci-F credentials by bringing the new 2024 lineup.
In FY24, the company experienced significant growth in its SUV revenue market share, climbing by 130 basis points year-on-year to reach 20.4%. This remarkable achievement was fueled by the company's best-ever sales performance, with a total of 459,877 units (SUVs) sold during FY24.
Scorpio, Thar, XUV700, and Bolero continued to be strong brands for the company in the UV segment. The company strengthens its UV product portfolio, attracting lower tax rates.
Internationally, theXUV700 has gained significant traction in Australia, contributing to a substantial increase in retail sales. In South Africa, the Scorpio-N ranks among the top SUVs in the body-on-frame segment, while the XUV300 in Tunisia was honoured with the Golden Wheel 2023 award for “Best Seller in its Segment,” according to the company's FY24 annual report.
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