M&M shares dive 8% today; automaker issues clarification on XUV700 price cut
M&M share price: The stock tumbled 7.79 per cent to hit a day low of Rs 2,697.80. It was last seen trading 6.60 per cent lower at Rs 2,732.70. At this price, the scrip was up 60.50 per cent in 2024 so far despite today's sharp drop.
- Jul 10, 2024,
- Updated Jul 10, 2024 3:29 PM IST
Shares of Mahindra & Mahindra (M&M) on Wednesday fell sharply after the carmaker decided a price cut for certain XUV700 variants. Today, the stock tumbled 7.79 per cent to hit a day low of Rs 2,697.80. It was last seen trading 6.60 per cent lower at Rs 2,732.70. At this price, the scrip was up 60.50 per cent in 2024 so far despite today's sharp drop.
Around 6.57 lakh shares changed hands today on BSE at the time of writing this story. The figure was higher than the two-week average volume of 1.14 lakh shares. Turnover on the counter came at Rs 179.78 crore, commanding a market capitalisation (m-cap) of Rs 3,39,987 crore.
Later in the day, Mahindra issued a "rumour verification" which mentioned that the price cut decision has nothing to do with Uttar Pradesh's EV/hybrid policy.
"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. 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," it stated.
"We kickstarted 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. These well-deliberated actions were incorporated in our annual business plan basis the material cost savings realised earlier and hence we do not expect any material impact on our financials," Mahindra added.
Mahindra also highlighted that the XUV700 demand continues to be robust and has increased its manufacturing capacity.
"Our new XUV700 bookings in June were 23% higher than in May and there is no concern of unsold inventory as reported by certain news channels/newspapers. 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," it mentioned.
As of March 2024, promoters held an 18.59 per cent stake in the automaker.
Shares of Mahindra & Mahindra (M&M) on Wednesday fell sharply after the carmaker decided a price cut for certain XUV700 variants. Today, the stock tumbled 7.79 per cent to hit a day low of Rs 2,697.80. It was last seen trading 6.60 per cent lower at Rs 2,732.70. At this price, the scrip was up 60.50 per cent in 2024 so far despite today's sharp drop.
Around 6.57 lakh shares changed hands today on BSE at the time of writing this story. The figure was higher than the two-week average volume of 1.14 lakh shares. Turnover on the counter came at Rs 179.78 crore, commanding a market capitalisation (m-cap) of Rs 3,39,987 crore.
Later in the day, Mahindra issued a "rumour verification" which mentioned that the price cut decision has nothing to do with Uttar Pradesh's EV/hybrid policy.
"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. 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," it stated.
"We kickstarted 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. These well-deliberated actions were incorporated in our annual business plan basis the material cost savings realised earlier and hence we do not expect any material impact on our financials," Mahindra added.
Mahindra also highlighted that the XUV700 demand continues to be robust and has increased its manufacturing capacity.
"Our new XUV700 bookings in June were 23% higher than in May and there is no concern of unsold inventory as reported by certain news channels/newspapers. 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," it mentioned.
As of March 2024, promoters held an 18.59 per cent stake in the automaker.