M&M falls on decision to inspect more than 1 lakh XUV units

Mahindra and Mahindra Limited (M&M) shares were down over a percent percent to Rs 1,536 in early trade on August 21 after the company announced it would inspect a select range of its XUV cars, including more than 1.08 lakh units of XUV700 and 3,560 units of its EV crossover XUV400.

The vehicles to be inspected will be rectified if required, the company said in an exchange filing on August 18. The XUV700 units set for examination were produced within two years before June 2023. On the other hand, the XUV400 vehicles slated for inspection were manufactured from February to June of this year.

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The automobile major added that the inspections are being conducted for a possible risk of abrasion cut of the wiring loom. In an endeavour to ensure a hassle-free experience for its customers, the company is proactively carrying out this activity. This action is also in compliance with the voluntary code on vehicle recall.

More recalls

Additionally, 3,560 XUV400 vehicles, manufactured between February 16, 2023, and June 5, 2023, will undergo inspection due to concerns related to the ineffective spring return action of the brake potentiometer.

The company also added that inspection and subsequent rectification will be carried out free of cost for all customers, who will be individually contacted.

In December last year, M&M issued a recall for a combined count of 6,618 Scorpio-N units and 12,566 XUV700 units. These vehicles were manufactured between July 1 and November 11, 2022. M&M issued a statement saying that a sorting process error at the supplier’s plant, on specific dates, may have affected the operating dimensional clearance of rubber bellow inside the bell housing.

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