'No link between XUV700 price cuts and UP EV policy': Mahindra & Mahindra

The automobile manufacturer said that the announced price cut of XUV700 is a business strategy that was pre-decided in a February meeting

Mahindra and Mahindra on Wednesday issued a clarification that the recent price cut on its certain XUV700 variants is not linked to the Uttar Pradesh EV/ hybrid policy for vehicles.

In a stock exchange filing, the automobile manufacturer said the announced price cut of XUV700 is part of its business strategy that was pre-decided in a February meeting. “We clearly outlined that we have to bring the average price point down to drive growth,” it noted, referring to the meeting.

The company said that it rolled out the move with the launch of AX5 select variant in May. “We have also brought in a 3rd anniversary celebration variant for the higher-end XUV700 for a limited period of four months,” the Mumbai-based company added.

 

The automaker emphasised that the decision was made, following material cost savings realisation earlier and added that the price cut move is not expected to have a significant impact on their financials.

It further noted that the demand for its XUV700 is robust and the company has subsequently increased its manufacturing capacity to meet the demands.

The automaker dispelled the concerns of unsold inventory, noting that the XUV700 variant clocked a 23 per cent increase in bookings in June compared to the previous month.

The development comes as the Yogi Adityanath-led UP government announced a complete waiver on the registration fee for hybrid cars, resulting in their on-road price decline up to Rs 4 lakh. The move is aimed at promoting green technology.

The state logged the sale of about 100 strong hybrid cars per month in the financial year 2023-24. 

The development has resulted in a significant price drop for hybrid vehicles such as Maruti Suzuki’s Grand Vitara, which is now cheaper by about Rs 2 lakh in Uttar Pradesh.