Mahindra & Mahindra has refuted claims linking the price cut on certain XUV700 variants to the UP EV/hybrid tax policy.

What Happened: The company, on Wednesday, clarified to the stock exchanges that the price reduction is a part of their ongoing business strategy. “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’,” the company said.

Mahindra & Mahindra initiated this strategy with the launch of the AX5 select variant in May 2024 and introduced a 3rd-anniversary celebration variant for the high-end XUV700 for a limited period of four months, the company added in filing. These actions were incorporated in their annual business plan based on the material cost savings realised earlier, and they do not expect any significant impact on their financials.

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The company also reported robust demand for the XUV700, with bookings in June being 23% higher than in May. The company has increased its manufacturing capacity in line with demand and dismissed concerns of unsold inventory as reported by certain news outlets.

The development comes as Tata Motors also reduced prices across its SUV range by up to ₹1.5 lakh on Tuesday. The Harrier and Safari SUVs will now retail at a starting ex-showroom price of around ₹15 lakh. The electric variants of the Nexon and Punch have seen price reductions of ₹1.3 lakh and ₹30,000, respectively.

Earlier, the Uttar Pradesh government waived the road tax on strong hybrid and plug-in hybrid vehicles, benefiting manufacturers such as Maruti Suzuki India, Toyota Kirloskar India, and Honda Cars India.

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