Mahindra & Mahindra Stocks Plunge Following SUV Price Cuts

Shares of Mahindra & Mahindra saw a significant drop of nearly 7% on Wednesday after the company reduced the prices of its SUV model to boost demand. This led to a considerable erosion in market valuation and a substantial decline in stock prices.

Shares of Mahindra & Mahindra dropped nearly 7 percent on Wednesday after the company cut prices of its SUV model to boost demand.

The stock tanked 6.62 percent to settle at Rs 2,732.10 on the BSE. During the day, it tumbled 7.79 percent to Rs 2,697.80.

At the NSE, it declined 6.68 percent to Rs 2,729.90.

The company's market valuation eroded by Rs 24,087.15 crore to Rs 3,39,744.51 crore.

It was the biggest laggard among the BSE Sensex and NSE Nifty firms.

Shares of Tata Motors also declined 0.92 percent to Rs 1,005.45 on the BSE after the firm slashed prices of its SUV models.

Mahindra & Mahindra said its XUV700's fully-loaded AX7 range now starts at Rs 19.49 lakh, a price cut of over Rs 2 lakh.

Tata Motors has revised the starting prices of its flagship SUVs, the Harrier (Rs 14.99 lakh) and the Safari (Rs 15.49 lakh) and extended benefits of up to Rs 1.4 lakh on other popular SUV variants.

''With regards to electric vehicles, never before seen benefits on the Nexon.ev (up to Rs 1.3 lakh), have made it the most accessible it has ever been,'' Tata Passenger Electric Mobility Chief Commercial Officer Vivek Srivatsa said in a statement.

The 30-share BSE benchmark closed lower by 426.87 points or 0.53 percent at 79,924.77. The NSE Nifty dropped 108.75 points or 0.45 percent to settle at 24,324.45.