Share price of Mahindra & Mahindra drops 5% despite strong EV bookings

Market Performance

Mahindra & Mahindra (M&M) shares took a hit despite an overwhelming response to its newly launched electric SUVs—the XEV 9e and BE 6. The stock slumped by 5% on February 17, 2025, even after the auto giant reported a staggering 30,179 bookings on the first day, amounting to Rs 8,472 crore in total booking value (ex-showroom price).

The price of M&M shares on the NSE was Rs 2,797.45 at 9:30 AM, a 4.9% decrease from the previous close. The stock emerged as the top loser on the Nifty 50 index, raising investor concerns.

M&M's EV Launch and Customer Response

M&M's foray into the EV market with the XEV 9e and BE 6 has generated substantial interest. The bookings split is 56% for the XEV 9e and 44% for the BE 6, indicating robust demand across models.

Key Highlights of M&M's EV Launch:

• Total Bookings: 30,179 on the first day
• Booking Value: Rs 8,472 crore (ex-showroom price)
• Model Pricing: Between Rs 18.9 lakh and Rs 30.5 lakh (ex-showroom)
• Top Variant Demand: 73% of bookings were for the high-end 79 kWh Pack Three
• Delivery Timeline: Commences from late March 2025 in a phased manner
• Production Capacity: 5,000 units per month, indicating a six-month waiting period

The significant pre-booking figures reflect  customer confidence in M&M's EV vision. The company aims to redefine the segment with electric SUVs that blend luxury, performance, and cutting-edge technology.

What's Next for M&M?

Despite the positive response, M&M's stock dip signals investor concerns over execution risks, EV adoption trends, and potential booking cancellations. The next few months will be crucial as the company finishes production and begins deliveries.