Mahindra & Mahindra has introduced substantial price cuts on the Mahindra XUV700 and other SUV models, giving customers the benefit of the revised GST slabs even before they officially come into effect on September 22.
Under the new GST structure, the tax rate on full-sized SUVs will drop from 48% to 40%, translating into savings of ₹88,900 to ₹1.43 lakh, depending on the model and variant.
For tax purposes, the XUV700 is categorized as an SUV—a segment that includes vehicles longer than four metres and powered by engines larger than 1,500 cc.
Earlier, these vehicles were taxed at 28% GST plus a 20% cess, bringing the total to 48%. With the revised structure, this has been simplified to a flat 40% rate.
According to Mahindra & Mahindra’s official website, the XUV700 now carries an ex-showroom price ranging between ₹14.49 lakh and ₹25.14 lakh.
The XUV700 comes with two engine options: a 2.2-litre mHawk turbo-diesel and a 2.0-litre turbo-petrol. The petrol unit delivers a peak power of 147 kW, while the diesel offers outputs between 114 kW and 136 kW, depending on the variant.
Your dream Mahindra XUV700 comes with full GST benefits starting 6th Sept. Enjoy savings up to ₹1.43 Lakh*.
— MahindraXUV700 (@MahindraXUV700) September 8, 2025
Why wait when you can drive it home today? pic.twitter.com/eFXwTrDYCM
The petrol variant generates a peak torque of 380 Nm, while the diesel delivers between 360 Nm and 450 Nm.
Transmission choices include a six-speed manual or a six-speed automatic.
In terms of size, the SUV measures 4695 mm in length, 1890 mm in width, and 1755 mm in height, and also comes equipped with roof rails.
Mahindra XUV700 Updated Prices After GST Cut
| Variant | Earlier GST + Cess | New GST Rate | Customer Benefit |
|---|---|---|---|
| MX | 48% | 40% | ₹88,900 |
| AX3 | 48% | 40% | ₹1,06,500 |
| AX5 S | 48% | 40% | ₹1,10,200 |
| AX5 | 48% | 40% | ₹1,18,300 |
| AX7 | 48% | 40% | ₹1,31,900 |
| AX7 L | 48% | 40% | ₹1,43,000 |
Mahindra & Mahindra has announced that customers purchasing any of its ICE (Internal Combustion Engine) SUVs will enjoy the full benefit of the revised GST rates. This decision follows the outcomes of the 56th GST Council meeting held on September 3, chaired by Finance Minister Nirmala Sitharaman. As per the company’s official release, the updated prices have been in effect since September 6.
Mahindra has revised the prices of several models under the new tax structure. The Bolero and Bolero Neo are now cheaper by up to ₹1.27 lakh. The XUV3XO gets a reduction of ₹1.4 lakh on petrol variants and ₹1.56 lakh on diesel trims. The Thar lineup also sees significant cuts, with savings of ₹1.35 lakh on the 2WD diesel, ₹1.01 lakh on the 4WD diesel, and ₹1.33 lakh on the Thar Roxx. Meanwhile, the Scorpio Classic is down by ₹1.01 lakh, and the Scorpio-N is now more affordable by ₹1.45 lakh.
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| Model | Current GST + Cess | New GST | Customer Benefit |
|---|---|---|---|
| Bolero / Neo | 31% | 18% | ₹1,27,000 |
| XUV3XO (Petrol) | 29% | 18% | ₹1,40,000 |
| XUV3XO (Diesel) | 31% | 18% | ₹1,56,000 |
| Thar 2WD (Diesel) | 31% | 18% | ₹1,35,000 |
| Thar 4WD (Diesel) | 48% | 40% | ₹1,01,000 |
| Scorpio Classic | 48% | 40% | ₹1,01,000 |
| Scorpio-N | 48% | 40% | ₹1,45,000 |
| Thar Roxx | 48% | 40% | ₹1,33,000 |
| XUV700 | 48% | 40% | ₹1,43,000 |
About the Mahindra XUV700
The Mahindra XUV700 is one of the brand’s most popular SUVs, known for its bold design, powerful performance, and advanced features. It comes with petrol and diesel engine options, paired with manual or automatic transmissions, offering both versatility and comfort. With the recent GST rate cut, the XUV700 has become more affordable, giving buyers savings of up to ₹1.43 lakh depending on the variant. This makes it an even more attractive choice for those seeking a feature-rich SUV at a competitive price.
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