Mahindra has announced it will pass the complete GST 2.0 benefits to customers. As a result, the XUV700 already a strong value pick in the premium midsize/3-row SUV space now becomes substantially more affordable across trims. The change directly stems from a structural tax reduction on larger vehicles, and it immediately improves the price-to-feature proposition for both petrol and diesel buyers.
What Exactly Changed with GST 2.0?
Before GST 2.0, large vehicles (longer than 4 metres and with engine capacity above 1500 cc) attracted an effective 48 percent tax: 28 percent GST plus 22 percent compensation cess. With GST 2.0, the total has been revised to 40 percent. That eight-percentage-point cut translates into meaningful ex-showroom price relief on qualifying variants of the XUV700. Because ex-showroom forms the base for on-road pricing, the net impact can be significant after adding state taxes, registration, and insurance.
Quick Summary
Item |
Details |
|---|---|
What changed |
GST 2.0 slashed total tax on large >4 m, >1500cc vehicles from 48% to 40% |
Model impacted |
Mahindra XUV700 (petrol and diesel, multiple variants) |
Savings (ex-showroom) |
₹88,900 to ₹1.43 lakh (variant dependent) |
Biggest cut |
AX7 L top-spec: up to ₹1.43 lakh |
Engine options |
2.0 TGDi petrol (197 bhp/380 Nm); 2.2 mHawk diesel (182 bhp/420 Nm) |
Transmissions |
6-speed MT/AT; AWD on select variants |
Claimed economy (user-reported/typical) |
Petrol: ~8.5 kmpl city / ~11 kmpl highway; Diesel: ~13.5 city / ~16.5–18.5 highway |
Why it matters |
Lower entry price, better value, wider reach for a feature-rich SUV |
Official website |
Variant-Wise Savings: How Much Cheaper Is the XUV700 Now?
Mahindra has aligned XUV700 pricing with the revised tax structure. Indicative reductions are as follows:
- MX variant: Save ₹88,900
- AX3 variant: Approx. ₹1.06 lakh lower
- AX5 S variant: Down by ₹1.10 lakh
- AX7 L (top-spec): Up to ₹1.43 lakh benefit
These cuts enhance the XUV700’s standing as a value-rich SUV, especially for buyers who were on the fence due to budget constraints or were cross-shopping lower variants in rival line-ups.
Note: Final savings can vary by powertrain, gearbox, seating configuration, and local charges. Always check current ex-showroom and on-road quotes at your nearest dealership.
Powertrains and Drivetrains: Performance Remains the XUV700’s Core
Despite the price correction, the mechanical strengths remain intact:
2.0-litre Turbocharged Petrol (TGDi)
- Power/Torque: 197 bhp / 380 Nm
- Gearboxes: 6-speed manual or 6-speed automatic
- Drive: Front-wheel drive; AWD available on select higher variants
- Real-world economy (indicative): ~8.5 kmpl city, ~11 kmpl highway
2.2-litre mHawk Diesel
- Power/Torque: 182 bhp / 420 Nm (higher torque in AT on select tunes)
- Gearboxes: 6-speed manual or 6-speed automatic
- Drive: FWD; AWD on top trims for enhanced traction
- Real-world economy (indicative): ~13.5 kmpl city, ~16.5–18.5 kmpl highway
The diesel’s breadth of torque and the petrol’s strong mid-range punch continue to make the XUV700 a versatile long-distance cruiser. AWD adds an extra layer of confidence on slippery or broken surfaces.
Features and Technology: Flagship Feel at Sharper Prices
The XUV700 is known for packing segment-leading features, many of which now become accessible at lower price points due to GST 2.0 benefits:
- ADAS suite (on higher variants): adaptive cruise control, lane assist, autonomous emergency braking, and more (variant dependent)
- Dual integrated screens for instrumentation and infotainment, with connected-car features
- Panoramic sunroof, premium audio, 360° camera (as per trim)
- Multiple airbags, ESP, hill-hold, and robust safety kit across the range
- 7-seater configurations available for family-first buyers
The net effect is a more compelling value stack versus similarly priced rivals that either skip advanced driver aids or charge a substantial premium for comparable equipment.
Ownership Economics: Where You Save Beyond the Sticker
- Lower EMI potential: Reduced ex-showroom can translate into improved EMI affordability when financed.
- Insurance basis: Many policies use ex-showroom as a reference; a lower base can help optimise premiums.
- Resale outlook: The XUV700’s strong brand pull, safety tech, and wide service network support long-term value retention.
Who Should Consider the XUV700 Now?
- Feature seekers on a budget: If ADAS, panoramic roof, and a premium cabin were previously stretching your budget, the revised prices may put a higher trim within reach.
- Highway tourers and large families: Torquey diesel + 7-seat layout + robust ride quality make it an excellent inter-city companion.
- All-weather users: AWD variants are ideal for hill states, monsoon-heavy regions, and rough roads.
Rivals and Positioning
The XUV700 competes with established 5/7-seat SUVs in the premium midsize space. With the latest price realignment, it aims to undercut or closely match key trims of competitors while offering a stronger mix of performance, safety tech, and comfort features.
How to Check Current Prices and Book
- Visit the official Mahindra XUV700 page to explore variants, features, and locate dealers:
https://auto.mahindra.com/suv/xuv700 - Request a fresh ex-showroom and on-road breakup reflecting GST 2.0, plus any ongoing dealer offers or exchange bonuses.
FAQs
1) What is the new tax rate applicable to the XUV700 under GST 2.0?
Large vehicles over 4 metres with engines above 1500 cc now attract 40 percent total tax, down from 48 percent earlier.
2) How much can I save on the XUV700?
Depending on the variant, savings range from ₹88,900 to ₹1.43 lakh, with the AX7 L typically seeing the largest cut.
3) Do both petrol and diesel variants benefit?
Yes. The price correction applies across qualifying petrol and diesel variants. The exact benefit can vary by configuration.
4) Are the fuel-efficiency figures official?
Figures cited here are indicative real-world numbers commonly reported by users for mixed conditions. Your actual mileage will vary by traffic, load, climate, and driving style.
5) Is AWD available after the price drop?
Yes. AWD continues on select higher variants, enhancing grip and stability on poor roads or in adverse weather.
6) Will on-road prices also reduce?
Typically, yes. Since on-road calculations start from ex-showroom, a lower base generally means a lower on-road figure. Check a dealer quote for your city.
7) Does the price cut affect features or warranty?
No change has been announced to feature sets or warranty solely due to GST 2.0 benefits. Features remain variant-specific.
8) Should I wait or buy now?
If the revised price brings your preferred variant within budget, this is a strong time to buy. If you seek a specific colour or delivery timeline, confirm allocation with your dealer.
Important Note
Prices, benefits, and variant equipment can change without prior notice. Always verify the latest ex-showroom and on-road quotes, variant features, and delivery timelines with an authorised Mahindra dealership.
Conclusion
By passing on the complete GST 2.0 benefit, Mahindra has sharpened the XUV700’s value proposition across the board. With significant variant-wise reductions peaking at up to ₹1.43 lakh the SUV’s blend of strong performance, advanced safety tech, rich features, and optional AWD is now accessible to a wider audience. For families and enthusiasts seeking a premium, future-leaning SUV without overshooting the budget, the 2025 XUV700 is now harder than ever to ignore.
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