Jul 10, 2024 02:47 PM IST
Mahindra & Mahindra said in a stock exchange filing, “The announced price cut of XUV700 is a continuation of our business strategy execution.
Mahindra & Mahindra said that there is no link between the recently announced price cut of XUV700 variants and Uttar Pradesh’s electric vehicle/ hybrid vehicle policy. The company said in a stock exchange filing, “The announced price cut of XUV700 is a continuation of our business strategy execution that was articulated in our 14th February 2024 analyst meeting where we clearly outlined that we have to bring the average price point down to drive growth.”
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“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,” Mahindra & Mahindra said.
The company also said that the price cut is a “well deliberated” action which was incorporated in its business plan based on the material cost savings it realized earlier.
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In the stock market today, shares of M&M lost around 7 per cent while benchmark indices were down 0.8 per cent. Brokerage firm Axis Capital put a target price of ₹3,150 on the stock and said, “We note that the overall volume of XUV700 has been around 6,000/month (15% of M&M’s overall SUV volume), and as per our understanding, the Top 2 trims of the model (AX7 and AX7L) account for around 50-60% of volume.”
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Uttar Pradesh waived registration fees for strong hybrid and plug-in vehicles which reduced their cost of ownership by 10%. At present, EVs are taxed at 5% while hybrids face a 43% tax. On this, Mahindra & Mahindra said, “We firmly believe that hybrid is an interim and costly solution. And, we have the readiness to offer high quality products for all solutions that our consumers desire.”
