Introduction

The Mahindra XUV700 has become more affordable as the recent Goods and Services Tax (GST) overhaul slashes prices by up to ₹1.43 lakh. This marks an early implementation of the new GST structure, with Mahindra passing on benefits to customers even before the official rollout date.

Background

Previously, large SUVs over 4 metres in length and with engines exceeding 1,500 cc were taxed at 28% GST plus up to 22% cess, resulting in an effective rate of ~48%. The government’s new GST structure simplifies this by imposing a flat 40% rate. While the new slabs take effect on 22 September 2025, Mahindra began offering reduced prices from 6 September 2025.

Key Developments

• Buyers of the Mahindra XUV700 now save between ₹88,900 and ₹1.43 lakh depending on the variant.

• Premium trims such as the AX7L provide maximum savings, while base variants like MX deliver smaller reductions.

• Other Mahindra SUVs also benefit:

  • Thar 2WD Diesel – approx. ₹1.35 lakh savings

  • Scorpio-N – approx. ₹1.45 lakh savings

  • XUV3XO and Thar Roxx – significant reductions as well

Issues

• The GST rationalisation aims to make SUVs more affordable, but it raises questions about government revenue impacts.

• Competitors may need to adjust pricing strategies to stay competitive.

• Environmental advocates may question whether cheaper large SUVs could affect sustainability goals.

Current Status

Dealers have already updated ex-showroom prices. Customers purchasing Mahindra SUVs before 22 September can still enjoy the reduced prices, effectively gaining early access to the tax benefits.

Conclusion

The GST overhaul has provided a major boost to SUV buyers, particularly for the XUV700. With substantial price cuts across Mahindra’s lineup, demand is expected to rise, strengthening the company’s position in the Indian SUV market.