M&M Shares Drop 2.5% Despite Market Rally: Here’s What’s Behind the Decline

• M&M Share Price Nosedives: Mahindra & Mahindra (M&M) saw its shares fall nearly 2.5% in today’s session, bucking the trend of a surging market.
• Price Hike Announcement: The decline is mainly attributed to M&M’s announcement of a 3% price hike for passenger vehicles (PVs) and commercial vehicles (CVs), effective from April 1. The increase comes as a result of rising commodity prices and higher input costs.
• Industry-Wide Trend: This move is part of a broader trend in the automotive sector, with several companies such as Maruti Suzuki, Tata Motors, Hyundai Motors, and Kia India also announcing price hikes due to similar pressures from input costs.
• Impact of Price Hikes: While necessary to offset rising costs, price hikes can negatively affect demand in the short term, leading to investor concerns. This could be weighing on M&M’s stock performance today.