Great news for SUV lovers and those on a tight budget. Mahindra has slashed the price of its most popular car, the XUV700. The government has recently revised the GST rates.
This car is quite powerful, looks good and is also affordable. Now that the price has been reduced, it will be able to reach more people. The car will now cost up to Rs 1.43 lakh less than its previous price. As a result, its competition with other cars in the mid-size SUV segment will increase.
The government has slightly reduced the GST on large cars. Earlier, SUVs had to pay 48% tax, now they have to pay 40%. So companies are able to reduce prices. It is expected that this will increase car sales.
The price of the XUV700 has been reduced from Rs 88,900 to Rs 1.43 lakh. The price will differ depending on the petrol and diesel engine models.
| Variant Example | Old Price (Ex-Showroom) | New Price (Ex-Showroom) | Savings |
|---|---|---|---|
| AX5 Petrol 7-Seater | ₹15.49 Lakh | ₹14.60 Lakh | ₹89,000 |
| AX7 Luxury Diesel 7-Seater | ₹21.38 Lakh | ₹20.25 Lakh | ₹1.13 Lakh |
| AX7 Luxury Ebony 4WD 7-Seater | ₹25.14 Lakh | ₹23.71 Lakh | ₹1.43 Lakh |
Note: Prices are approximate ex-showroom figures before additional taxes, insurance, and dealer charges. Actual on-road prices may vary by city.
As soon as the government reduced the tax, Mahindra reduced the price and gave benefits to the customers. A company spokesperson said, “The XUV700 has been very popular since its launch in 2021. Now more people will be able to buy this car due to the reduction in GST.”
This car has some great features, such as ADAS Level 2, panoramic sunroof and a 5-star safety rating in Global NCAP. It is a very safe car. More than 3 lakh units have been sold in India so far.
Not only the XUV700, but Mahindra’s other SUVs such as the Scorpio-N and the XUV3xo have also been reduced in price. In total, discounts of up to Rs 1.56 lakh are available. Experts say that this will increase the demand for expensive SUVs again. Because many people could not buy them due to high taxes.
A car expert said, “This is great news before the start of the festive season. The search and sales of cars like the XUV700 will increase a lot.”
However, the price reduction has not been uniform across all models. The amount of the price reduction depends on the previous price and taxes of the car. It has been advised to contact local dealers to know the exact price. Because taxes and insurance differ from state to state.
Since electric and hybrid cars have low taxes (at least 5%), their demand is also increasing. This has created pressure to do something new in petrol and diesel engine cars. However, due to the price reduction of the XUV700, it is now in a better position than cars like the Tata Safari and Hyundai Alcazar.
It is heard that deliveries will start very soon. Mahindra dealers say that many people are now coming to inquire, which indicates an increase in customer interest.
The country’s economy is gradually improving. Car sales increased by 8% in early 2025. It remains to be seen whether this sales will increase further due to the reduction in GST.
However, for now, interest in buying the XUV700 is increasing and this is a good opportunity for customers.
