📷 Image Credits: Business Today
Mahindra & Mahindra (M&M) shares witnessed a significant decline today following the announcement of a price cut for certain XUV700 variants. The stock tumbled by 7.79% to touch a day low of Rs 2,697.80 before rebounding slightly to trade 6.60% lower at Rs 2,732.70. Despite this sharp drop, the scrip has still shown an increase of 60.50% in the year 2024 so far.
This sudden dip in share price resulted in around 6.57 lakh shares changing hands on the BSE, much higher than the two-week average volume of 1.14 lakh shares. The turnover on the counter amounted to Rs 179.78 crore, with a market capitalization of Rs 3,39,987 crore.
In response to the price cut controversy, Mahindra issued a statement clarifying that there is no connection between the price reduction and Uttar Pradesh’s EV/hybrid policy. The decision was part of the company’s strategic business execution plan laid out in a previous analyst meeting earlier in the year.
The automaker emphasized its commitment to driving growth by offering select variants at lower price points. Additionally, Mahindra highlighted the increased demand for XUV700 and its capacity expansion to meet the growing market needs.
The move comes amidst a larger marketing strategy shift for M&M, where the iconic spokescandies are being paused indefinitely due to perceived polarization. Actress Maya Rudolph will now serve as the new face of the brand in an effort to connect with a wider audience.
The decision to pause the spokescandies drew criticism from some fans and experts who questioned if it was a PR stunt or a genuine attempt to address controversy. The brand faced backlash for recent changes to its characters, including a push for inclusivity, which led to right-wing criticism and a debate over the brand’s direction.
The M&M’s saga serves as a lesson for brands navigating the current polarized landscape, with experts highlighting the importance of aligning with core brand values and understanding the impact of marketing decisions. While the decision to pause the spokescandies may be temporary, it reflects the challenges faced by brands in balancing inclusivity and traditional values in today’s environment.
