Mahindra & Mahindra clarified on Wednesday that the recent price reduction of XUV700 variants is not influenced by Uttar Pradesh's electric vehicle (EV) and hybrid vehicle policy. According to a filing with the stock exchange, the company stated that the price cut is part of their strategic business plan outlined during their analyst meeting on February 14, 2024.
"We initiated this strategy to lower the average price point and stimulate growth," Mahindra & Mahindra affirmed. The effort commenced with the launch of the AX5 select variant in May 2024, followed by a limited-time third-anniversary celebration variant for the higher-end XUV700.
The company emphasized that these decisions were carefully considered and integrated into their business plan, leveraging earlier material cost savings.
Uttar Pradesh, India's second-largest car market, recently waived registration fees for strong hybrid and plug-in vehicles, reducing ownership costs by 10%. Currently, EVs face a 5% tax rate, while hybrids are taxed at a higher 43% rate.
Previously, cars priced above Rs.10 lakh incurred a 10% registration fee, which has been eliminated since July 1. This change has led to price reductions ranging from Rs.1.5 lakh to Rs.3 lakh across various models and variants, as reported by a sales manager at a Maruti showroom in Noida.
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