Following the Indian government’s announcement on September 22nd regarding the reduction of Goods and Services Tax (GST) rates on all types of cars, Mahindra has begun passing on the benefits to its customers. The move, which eliminated the compensation cess on cars, is expected to positively impact the automobile industry, leading to lower prices for most vehicles in the coming days. Mahindra initiated the price adjustments on September 6, 2025.
The company has shared information about the price savings on select vehicles, including the XUV700, across different variants. While the exact new prices for each variant are yet to be announced, the company has clarified the savings customers can expect based on their chosen variant. It is important to note that these are estimated new prices for the XUV700 only, and customers should contact their nearest Mahindra showroom for accurate pricing details.
**Price Reduction Details**
| Mahindra XUV700 Model | Ex-Showroom Price Reduction |
|—|—|
| MX | Rs 88,900 |
| AX3 | Rs 1,06,500 |
| AX5 S | Rs 1,10,200 |
| AX5 | Rs 1,18,300 |
| AX7 | Rs 1,31,900 |
| AX7 L | Rs 1,43,000 |
**Tax Reduction Details**
The Mahindra XUV700 is an SUV exceeding 4,000 mm in length with an engine capacity above 1,500cc. Previously, this segment was subject to a 48% GST (28% GST and 20% cess), but under the new GST structure, it will now attract only 40% GST. This translates to a total saving of 8% for customers. The ex-showroom price of the SUV now starts from ₹14.49 lakh and goes up to ₹25.89 lakh.
