Mahindra XUV700 Price Drops After GST Reform – New Rate List & Old vs New Comparison Explained

The Mahindra XUV700 has been one of the most successful SUVs in India, thanks to its strong road presence, feature-rich interiors, and powerful performance. Now, the SUV has become even more attractive to buyers because of the recent Goods and Services Tax (GST) changes. The revised tax structure has directly lowered the ex-showroom prices of the XUV700, translating into big savings for customers.

This article explains the new GST rules, the old vs new price comparison, the variant-wise benefits, and what these changes mean for you if you are planning to purchase the Mahindra XUV700 in 2025.

Table of Contents

Why GST Matters for Car Buyers

Before diving into the XUV700’s updated price list, let’s quickly understand why GST is important in the Indian automobile market.

Every new car in India attracts GST (Goods and Services Tax) plus an additional compensation cess depending on the car’s length, engine capacity, and fuel type.
SUVs like the Mahindra XUV700, which fall in the higher tax bracket, were earlier taxed at a combined rate of nearly 48% (GST + cess).
After the recent GST reform (effective September 2025), this rate was reduced for several SUVs. Now, the effective rate for XUV700 variants is around 40%, creating an immediate price drop.

This means buyers are not only paying less tax but also getting more value for their money.

Mahindra’s Quick Response to GST Cut

Mahindra & Mahindra was one of the first automakers to respond to the new GST structure. The company officially confirmed that it has reduced the ex-showroom prices of its popular SUVs, including:

Mahindra XUV700
Scorpio N
Thar
XUV3XO
Bolero Neo & Bolero

For the XUV700, the price cuts range from about ₹88,000 to nearly ₹1.5 lakh, depending on the variant. This makes the SUV much more competitive against rivals like the Tata Safari, Hyundai Alcazar, and MG Hector.

Mahindra XUV700 – Old vs New Price List

Here’s a closer look at how much you can actually save on different variants of the XUV700.

Variant	Old Effective Tax Rate	New Effective Tax Rate	Approx. Price Reduction
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 / AX7L	48%	40%	₹1,43,000 – ₹1,56,000

👉 The higher the variant price, the bigger the savings. This is because the tax reduction is percentage-based.

Example: How the GST Cut Works in Numbers

Let’s simplify the math with an example.

Assume the ex-factory price of a variant is ₹12 lakh.
Under the old system, with ~48% tax, the ex-showroom price was:
₹12,00,000 + 48% of 12,00,000 = ₹17,76,000.
Under the new system, with ~40% tax, the ex-showroom price is:
₹12,00,000 + 40% of 12,00,000 = ₹16,80,000.

Net savings = ₹96,000.

This is almost exactly what buyers are saving on entry-level XUV700 trims. For premium trims with higher base prices, the absolute savings naturally go up.

Why Different Sources Show Different Savings

You might see different numbers depending on the website or news portal you follow. For example:

Some reports include only the GST/cess savings.
Others also add festive discounts or dealer offers to calculate the final benefit.
In certain states, the way registration and road tax are calculated may slightly affect the on-road reduction.

So, always check with your local dealer for the exact updated ex-showroom and on-road prices.

Practical Benefits for Buyers

So, what does this mean if you’re planning to buy the Mahindra XUV700 in 2025?

1. Real Savings on Ex-Showroom

The drop of ₹88,000–₹1.5 lakh is not a small number. It can cover:

Extended warranty packages
Premium accessories
A chunk of your down payment

2. Better Value in Higher Variants

Previously, some buyers hesitated to go for AX7 or AX7L because of the price jump. With the GST cut, these trims now feel more value-for-money.

3. Additional Festive Offers

Since Mahindra is also running festive promotions, you may get exchange bonuses, free insurance, or warranty extensions stacked on top of the GST savings.

4. Improved Resale Value

Lower ex-showroom prices also mean the XUV700 stays competitive in the resale market, as the new pricing strengthens demand.

Things to Keep in Mind

Even though the GST reform is good news, here are a few important points to remember:

On-road price ≠ Ex-showroom price: Road tax, insurance, and handling charges are still extra and are not reduced by GST.
Old bookings vs new bookings: If you booked the car before the GST change, confirm with the dealer whether the benefit applies to your order.
Dealer transparency: Always ask for an itemised price breakup to ensure you’re receiving the full benefit of the tax cut.

Frequently Asked Questions (FAQs)

Q1: Is the GST cut permanent?
Yes. The GST Council revised the tax slabs permanently, not as a temporary relief measure. Manufacturers have passed these benefits to customers.

Q2: Does this apply to EV versions of Mahindra cars?
No. The GST cut mainly impacts petrol and diesel SUVs. Electric vehicles already have a much lower GST rate of 5%.

Q3: Will road tax also reduce after this?
No. Road tax is a state-level charge and has not been reduced. The GST cut only impacts the ex-showroom component.

Q4: Can I get both GST savings and festive discounts?
Yes. Dealers are applying both. The GST cut is a tax change, while festive discounts are promotional offers. Together, they maximise your savings.

Buying Tips After GST Reform

If you’re heading to the showroom soon, here’s a quick checklist:

Ask for an updated price list that clearly shows the new GST benefit.
Compare multiple dealers in your city — some may offer additional discounts on top of the tax cut.
Check delivery timelines, as demand for SUVs like XUV700 may rise after the price drop.
Use the savings smartly — consider investing the amount in an extended warranty, premium sound system, or a higher variant.

Conclusion

The GST cut has made the Mahindra XUV700 more appealing than ever. With confirmed savings ranging from nearly ₹90,000 to over ₹1.5 lakh, the SUV now delivers even stronger value against competitors. Whether you’re eyeing the entry-level MX or the premium AX7L, there’s never been a better time to bring home the XUV700.

For many Indian buyers, this price revision could be the deciding factor in choosing the XUV700 over its rivals. So, if you’ve been waiting, this festive season might just be the perfect time to book one.