Mahindra and Mahindra shares drop on decision to recall 1 lakh XUV units over wiring issues

Shares of Mahindra and Mahindra dropped to a low of Rs 1531.35 apiece on BSE in morning trade on Monday after the company announced that it would be recalling a large number of units across its XUV range.

The company on Friday said that it would recall more than 1 lakh units of XUV model over a potential wiring issue.

The company’s shares dipped to over 1.3 per cent on Monday morning on BSE. M&M shares were trading at Rs 1542 apiece, down 0.66 per cent, on BSE at 12:18 PM.

M&M to recall more than 1 lakh units of XUV range

The volatility in the auto shares came after the company announced that it was recalling 1.08 lakh units of XUV700 and 3,560 units of its EV-variant XUV400. The company added that the vehicles will be inspected and then rectified if needed. The recalled XUV700 were produced two years before June 2023 while the XUV400 models recalled were manufactured between February to June 2023. The possible fault for the recalled XUV700 was due to a possible risk of abrasion cut of the wiring loom. The reason for recall on the XUV400 was due to concerns related to the ineffective spring return action of the brake potentiometer.

The company was proactively recalling the vehicles, according to the code on voluntary vehicle recall. The company added that any potential repairs will be done free of cost and the affected customers are being individually contacted by the company.

The company had previously issued a recall for 6,618 Scorpio-N units and 12,566 XUV700 units in December 2022. The recalled vehicles were manufactured between July 1 and November 11, 2022 and were recalled due to a sorting process error at the supplier’s plant. This error may have resulted in unwanted changes in the operating dimensional clearance of the rubber which sits below the bell housing.