The Indian automobile market has been buoyed by the government’s reduction in GST rates. To ensure customers fully benefit from this change, Mahindra & Mahindra has announced a significant price reduction on its popular SUV, the Mahindra XUV700. Although the government implemented these changes on September 22nd, Mahindra has begun passing on the benefits to customers starting September 6th, 2025. If you’re planning to purchase a Mahindra XUV700 soon, this is a great opportunity.

GST Reduction on Mahindra XUV700

The government has reduced the tax on vehicles over 4 meters in length and with an engine capacity of over 1500 cc from 48% to 40%. Previously, these vehicles were subject to 28% GST and 20% cess. This change has significantly benefited large vehicles like the Mahindra XUV700, resulting in direct savings of 8% for customers. The company has announced that this benefit will be passed on to customers, resulting in a significant price drop for the XUV700.

How much has the Mahindra XUV700 become cheaper

After the GST cut, the Mahindra XUV700 is receiving significant discounts ranging from ₹88,900 to ₹1.43 lakh. The company has not yet released the exact new prices for each variant, but has clarified the benefits customers will receive. The Mahindra XUV700 MX variant is seeing a savings of ₹88,900. The AX3 variant has seen a significant price cut of ₹1,06,500.

The AX5 S variant has seen a price reduction of ₹1,10,200, while the AX5 is seeing a benefit of ₹1,18,300. The AX7 variant is offering savings of ₹1,31,900, with the biggest benefit being the top-spec AX7 L variant, which has seen a price reduction of up to ₹1.43 lakh.

Features and Price

The Mahindra XUV700 is considered the most powerful and feature-rich SUV in its segment. Its ex-showroom price starts at ₹14.49 lakh and goes up to ₹25.89 lakh. With the GST reduction, its pricing will become even more attractive. Features like ADAS, a 360-degree camera, and a powerful touchscreen infotainment system make it a premium option. This could prove to be a great deal for customers in the Indian market.