Mahindra & Mahindra share price today: Why Did Mahindra & Mahindra Shares Drop 6.4% Today?

Mahindra & Mahindra Share Price Today: AX7 Petrol-MT 6-str Now Priced at ₹19.69 Lakh, Down from ₹21.54 Lakh – A Reduction of ₹1.85 Lakh

Mahindra & Mahindra Share Price Today Update: M&M Shares Dip 6.4% as Company Introduces Up to ₹2 Lakh Price Reduction on XUV700 AX7 Variant

“In today’s early trade, shares of Mahindra & Mahindra , renowned for its automotive and farm equipment, dropped by 6.4% to ₹2736 each. This decline follows the company’s announcement of a temporary price cut of up to ₹2 lakh on its top XUV700 variant, the XUV700 AX7.”

“The reduced pricing, effective for four months starting July 10, coincides with the XUV700’s third anniversary and aims to boost sales by making the feature-rich AX7 trims more accessible. With prices now starting at ₹19.49 lakh, Mahindra hopes to attract more buyers seeking its premium driving experience and cutting-edge features.”

Mahindra & Mahindra share price today: Is There a Slump in SUV Demand?

Both M&M and Tata Motors have recently slashed prices on their SUVs like the XUV700, Harrier, and Safari, effective until July 31. Analysts view these reductions as signs of declining demand within the segment. Factors contributing to this trend include reduced consumer inquiries and delayed vehicle purchases, influenced in part by recent heat waves impacting consumer behavior.

Despite these challenges, the XUV700 has emerged as Mahindra’s fastest-selling vehicle, achieving over 1.5 lakh unit sales within 30 months of its launch. The model continues to enhance its futuristic appeal with the introduction of the new 2024 lineup.”

“During FY24, Mahindra saw robust growth in its SUV revenue market share, rising by 130 basis points year-on-year to reach 20.4%. This milestone was supported by the company’s record-breaking sales performance, totaling 459,877 units of SUVs sold.”

Scorpio, Thar, XUV700, and Bolero Maintain Strong Positions in Mahindra’s UV Segment. Company Enhances UV Product Portfolio to Leverage Lower Tax Rates.

India’s Tax Regime for Passenger Vehicles: Differential Rates Based on Vehicle Size, Engine, and Fuel Type

Traditionally, India has maintained varying tax rates for small and large passenger vehicles, influenced by factors such as vehicle length, engine size, and fuel type.

Mahindra & Mahindra has strategically diversified its UV product portfolio to benefit from lower tax rates. Models like the XUV300, Bolero Neo, Bolero Power Plus, and Thar now fall under reduced tax brackets. Notably, the XUV400 enjoys the lowest GST among all categories of passenger vehicles.

Global Success of Mahindra’s SUV Models

The XUV700 has seen notable success in Australia, driving a significant rise in retail sales. In South Africa, the Scorpio-N has emerged as a leading SUV in the body-on-frame segment. Additionally, the XUV300 was recognized in Tunisia with the Golden Wheel 2023 award for ‘Best Seller in its Segment,’ as reported in the company’s FY24 annual report.

Mahindra’s Achievements and Growth in FY24

Highlighting its prowess, the Scorpio-N set a Guinness World Record for the fastest crossing of the Simpson Desert by a production vehicle in Australia. The company continues to strengthen its global presence with a diverse portfolio of SUVs and commercial vehicles, emphasizing its commitment to international markets.

In FY24, Mahindra achieved significant milestones and market leadership with total sales reaching 8,24,939 vehicles. This includes 7,46,833 four-wheelers and 78,106 three-wheelers, marking an impressive 18.1% growth compared to the previous year’s total of 6,98,456 vehicles (6,39,374 four-wheelers and 59,082 three-wheelers).

Domestically, Mahindra sold a total of 8,00,276 vehicles, up from 6,66,349 vehicles in the previous year, demonstrating robust growth of 20.1%.”

Mahindra’s Performance in FY24 Passenger Vehicle Segment

Mahindra reported sales of 4,59,877 vehicles within the passenger vehicle (PV) segment, comprising 4,59,864 utility vehicles (UVs) and 13 vans. This represents a significant increase from the previous year’s sales volume of 3,59,253 vehicles, which included 3,56,961 UVs, 2,078 vans, and 214 cars, reflecting a notable growth of 28%.

In the fiscal year, the overall Indian automotive industry (excluding 2-wheelers) expanded by 10.1%, with the passenger vehicle (PV) segment growing by 8.4% and the commercial vehicle (CV) segment experiencing a marginal increase of 0.6%.

The UV segment, where Mahindra has a strong presence, showed robust growth of 25.8%. Within the CV segment, the Light Commercial Vehicles (LCV) goods segment declined by 2.9%, while the Medium and Heavy Commercial Vehicles (MHCV) goods segment saw a slight decrease of 0.2%.