Thinking about buying a big family SUV that comes packed with features but does not drain your savings? The Mahindra XUV700 has just become more attractive after India’s latest GST update. The tax cut on large SUVs was confirmed in early September 2025, and Mahindra wasted no time passing the benefit directly to customers. Prices dropped from September 6, even before the official rollout on September 22. If a 7-seater SUV for long family drives has been on your mind, this may be the right time to make the move.
What Changed With The GST Rules?
The GST Council has replaced the earlier system with a simpler two-slab tax structure for cars. For SUVs above 4 meters in length with engine size over 1,500cc, like the XUV700, the older rate was 48% (28% GST + 20% cess). The new rule sets a flat 40% GST with no cess. This 8% drop brings down costs and could give a fresh push to SUV sales, especially with the festive season coming up.
Mahindra responded faster than most rivals. Instead of waiting till September 22, it reduced prices from September 6 across its ICE SUV range. For the XUV700, this means savings of about ₹88,900 on the entry variant and up to ₹1.43 lakh on higher trims. The cut is 5-6% on ex-showroom prices, and when you add lower RTO and insurance, the final on-road saving could reach 8-10%.
How Much Will You Save? Variant-Wise Breakdown
The XUV700 comes in petrol and diesel, with manual or automatic gearboxes, 2WD or AWD, and seating for 5, 6, or 7. The higher the variant, the bigger the savings. Here’s the latest breakdown:
| Trim Category | Old Price Range (₹ Lakh) | New Price Range (₹ Lakh) | Savings (₹) | Notes |
|---|---|---|---|---|
| Base (MX Petrol/Diesel, 7-Seater) | 14.49 – 15.00 | 13.66 – 14.13 | 88,900 – 1.00 Lakh | Entry-level cut, still a smart pick for budget buyers |
| Mid-Spec (AX5/AX7 Petrol/Diesel, Manual/Auto) | 17.00 – 22.00 | 16.00 – 20.80 | 1.00 – 1.20 Lakh | Popular trims like AX5 Diesel AT now ~5.5% cheaper |
| Top-Spec (AX7L Ebony Diesel AWD, 7-Seater) | 26.99 | 25.56 | Up to 1.43 Lakh | Biggest drop, great for buyers seeking luxury features |
For diesel automatics, the top AX7 Luxury Ebony 4WD sees about ₹1.44 lakh off, priced near ₹23.70 lakh. City-wise quotes will differ, so check with a dealer. For example, in Delhi, the base petrol now costs ~₹16.50 lakh on-road, down from ~₹17.50 lakh.
Why The XUV700 Makes More Sense Now
The XUV700 is not just about a cheaper tag, it also brings family-friendly value. You get a 2.0L turbo-petrol with 197 hp or a 2.2L diesel producing 182-200 hp. Features include Level 2 ADAS, ventilated seats, and a 10.25-inch touchscreen. When compared with rivals, the benefit is clear:
- Vs Hyundai Creta: More spacious with 7-seat option, diesel mileage up to 17 kmpl, now almost ₹1 lakh cheaper on similar specs.
- Vs Tata Harrier: Similar diesel power, but XUV700 offers AWD plus savings of about ₹1.40 lakh.
- Vs MG Hector: Offers HUD and more premium feel, now about 5-6% better priced.
Social media is buzzing. One buyer posted, “Finally the XUV700 is affordable, thanks to the ₹1.43 lakh cut.” But some recent owners are disappointed, with comments like, “I bought mine in August, just missed the GST benefit.” Still, most reactions have been positive, and many see Mahindra’s quick move as smart timing before Navratri sales.
What This Means For Buyers
If you are looking for a new SUV, this cut makes the XUV700 a strong choice. The drop could reduce monthly EMIs by ₹2,000-3,000 depending on your loan. With festive discounts coming, savings may grow further. Do note that EVs continue at 5% GST, so there is no change for electric buyers.
