Mahindra XUV700 Sees Price Drop of Up to ₹1.43 Lakh After GST Overhaul

September 12, 2025 Kiran

Mahindra & Mahindra has announced that it is passing on the benefits of the new GST (Goods and Services Tax) structure to customers, resulting in a price reduction for the Mahindra XUV700 sees price. Depending on the variant, buyers can now save between ₹88,900 and ₹1,43,000.

What’s Changed About Mahindra XUV700 Sees Price & Why

Old Tax Rate: Previously, large SUVs (length over 4 meters and engine capacity above 1,500 cc) were subject to 28% GST plus up to 20% cess, bringing the effective tax burden to about 48%.
New Tax Structure (GST 2.0): Under the revised regime, these large SUVs will now attract a flat 40% GST, with the cess removed.
Mahindra decided to implement the new pricing before the official date the new rates take effect, ensuring buyers benefit immediately.

Variant-Wise Mahindra XUV700 Sees Price Savings

Here are some of the estimated savings per variant of the XUV700, after the GST change:

Variant	Approximate Savings
MX	₹88,900
AX3	₹1,06,500
AX5 S	₹1,10,200
AX5	₹1,18,300
AX7	₹1,31,900
AX7 L	₹1,43,000

The most premium trims get the largest benefit; the base trims get lower but still meaningful savings.

Timing & Broader Impact

Mahindra began reflecting the revised prices from early September 2025, ahead of the official GST rate cut date of September 22, 2025.
The price drop is part of a wider movement by automakers to adjust prices in light of the GST Council’s decision to streamline tax slabs. Several other Mahindra SUV models (like Thar, Scorpio, XUV 3XO) also got similar price reductions ranging from over ₹1 lakh to around ₹1.56 lakh depending on variant and fuel type.

What This Means for Buyers

Buyers eyeing an XUV700 can now consider getting one at a lower cost, especially the higher-spec variants that saw the biggest reduction.
The change affects ex-showroom pricing, which means downstream costs like registration, insurance, and road tax will also reduce somewhat (since they are calculated as a percentage of car price).
It also means that Mahindra’s large SUV segment becomes more competitive, both against models from rival brands and against earlier expectations.

Wider Auto Industry Context

The GST revision (often referred to as GST 2.0) was announced in a meeting of the GST Council.
It redefined tax slabs for various vehicle categories, making smaller cars, under certain engine size and dimension limits, much more affordable. For large SUVs, the rate dropped from ~48% effective rate to 40%.
Several manufacturers have responded by revising prices, often passing full benefits to consumers.

Final Take

For anyone looking to buy a Mahindra XUV700, this is a favorable moment. The price drops aren’t uniform—they depend heavily on the variant—but even for mid-level trims, the savings are real. Larger trims now offer savings that can exceed ₹1.4 lakh.

If you’re comparing options with rivals or looking at value retention, the XUV700 post-GST revision becomes a much stronger purchase proposition. Just make sure to check the exact ex-showroom price in your city, as location-based taxes and dealer margins can slightly affect final figures.