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Business News/ Auto News / XUV 700 price cut not linked with UP's new vehicle policy: Mahindra and Mahindra
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XUV 700 price cut not linked with UP's new vehicle policy: Mahindra and Mahindra

The Uttar Pradesh government's hybrid vehicle policy has no connection with Mahindra and Mahindra's decision to slash the price of its popular SUV, the XUV 700.

The fully loaded AX7 range of the XUV700 now starts at ₹19.49 lakh, according to Mahindra & Mahindra, a savings of more than ₹2 lakhPremium
The fully loaded AX7 range of the XUV700 now starts at 19.49 lakh, according to Mahindra & Mahindra, a savings of more than 2 lakh

The Uttar Pradesh government's hybrid vehicle policy has no connection with Mahindra and Mahindra's decision to cut down the price of its popular SUV model, the XUV 700, the company said on Wednesday, 10 July.

In a regulatory filing, Mahindra and Mahindra said, "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 Bharatiya Janata Party government in Uttar Pradesh a day ago announced a waiver of road tax on hybrid cars. This policy aims to encourage the adoption of greener vehicles and reduce the environmental impact of traditional gasoline and diesel-powered cars.

"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. We kickstarted this effort with the launch of 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," Mahindra and Mahindra further added.

The fully loaded AX7 range of the XUV700 now starts at 19.49 lakh, according to Mahindra & Mahindra, a savings of more than 2 lakh. It further stated that the price reduction will allow more individuals to try the range.

"The demand for the XUV700 continues to be robust and we have increased our manufacturing capacity in line with demand. Our new XUV700 bookings in June were 23% higher than 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 stated.

Companies like Maruti Suzuki India (MSIL), Honda Cars India (HCIL), and Toyota Kirloskar Motor (TKM), whose consumers can receive benefits of up to 3.50 lakh, are expected to benefit from the move. Road tax rates in Uttar Pradesh are as follows: 8 per cent for cars under 10 lakh and 10 per cent (ex-showroom) for cars beyond 10 lakh.

With retail sales of 2,36,097 units in the first half (H1) of this year, up 13.46 per cent from 2,08,092 units in January–June 2023, UP is one of the nation's top markets for passenger cars, according to the Federation of Automobile Dealers Associations of India.

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Published: 10 Jul 2024, 06:13 PM IST
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