Shares of Mahindra & Mahindra (M&M) slipped by almost 8% to hit a day’s low of Rs 2697.80 on 10 July. According to certain speculations, the stock plummeted after the carmaker concluded a price cut for certain XUV700 variants.

A total of 6.57 lakh shares were exchanged today, higher than the previous week’s average volume, with a turnover of Rs 179.78 crores. The Market Capitalization of Mahindra & Mahindra stood at 3,39,987 crores.

Later today, the company issued a “rumor clarification” which mentioned that the price cut decision had nothing to do with UP’s EV/Hybrid Policies. According to the reports, the price cut is part of the business strategy discussed in the 14 February 2024 analyst meeting. The goal is to lower the average price point to drive growth amongst domestic users.

The AX5 select variant launched in May 2024 and a 3rd-anniversary celebration variant for the higher-end XUV700 was introduced for a limited period of 4 months. These actions were part of the annual business plan based on material cost savings and won’t impact financials. XUV700 demand remains strong, and manufacturing capacity has been increased. The June XUV700 bookings were 23% higher than the May Quarter, with no issues of unsold inventory.

Mahindra believes hybrid is an interim, costly solution and is ready to offer high-quality products for all consumer needs.

As of the March 2024 shareholding pattern, the promoters held an 18.59% stake in the carmaker.

At 3:30 PM, the shares of Mahindra & Mahindra closed 6.62% lower at Rs 2,732.10 on BSE.

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