A Dream SUV That Just Came Closer
For many car fans, the Mahindra XUV700 has always been a symbol of powerful engine, comfort, and technology. It is an SUV that doesn’t just take you from one place to another; it makes every journey feel like a celebration. The wide stance, bold big grille, modern LED headlights, and luxurious leather interiors have given this Mahindra XUV700 SUV a strong fan following in India. Families love its space, adventurers admire its powerfull performance, and technology enthusiasts enjoy its futuristic modern features.
But if there was one thing that kept some customers waiting, it was the price tag after GST. The XUV700 offered a lot of value, but with high GST rate and cess on large SUVs, the final cost often felt out of reach. That has now changed. Thanks to the government’s new GST rate reform, the Mahindra XUV700 has become more affordable, and the difference is significant low.

The New GST Rate Explained
Earlier, large SUVs like the Mahindra XUV700 attracted a 28% GST plus a hefty cess, which made the effective tax go as high as 47–50%. This additional cess pushed prices up for buyers, making the ownership of premium SUVs more costlier.
Now, with the government simplifying the tax structure, SUVs will be taxed at a flat 42% rate. This may look like just a number on paper, but in reality, it has reduced the overall burden for car manufacturers and buyers alike. The effect of this new rule can already be seen in the latest Mahindra price range.
Price Drop on the Mahindra XUV700
Mahindra XUV700 has passed on the benefit of the reduced tax directly to customers. Depending on the variant, the Mahindra XUV700 is now cheaper by ₹80,000 to ₹1.43 lakh.
- For example, a variant that was earlier priced at around ₹19.49 lakh is now cheaper by about ₹1.33 lakh.
- Higher trims, especially diesel automatic versions, see even larger reductions, going up to ₹1.53 lakh.
- Even the entry-level trims now come with a significant reduction, making the Mahindra XUV700 more attractive to budget-conscious families.
This drop amounts to around 5–6% savings across the range. In today’s market, where car loans and fuel prices already strain family budgets, this relief feels like a welcome gift.
Why This Change Matters for Buyers

More Value for Money
The Mahindra XUV700 was already considered one of the best powerfull SUVs in its segment because it offered features that often appear in far more expensive cars. With the new GST rate slab, that value has increased even more. Buyers can now access premium features like ADAS (Advanced Driver Assistance Systems), panoramic sunroof, dual 10.25-inch displays, and connected car with advance technology at a much better price point.
A Wider Choice of Variants
Many buyers often had to compromise on their dream variant due to budget tight. For instance, someone planning to buy the mid-spec model might now be able to stretch comfortably to the higher SUV variant with additional safety and luxury features. The GST reduction not only saves money but also opens the door to better choices for customers.
Encouragement for First-Time SUV Owners
For first-time Mahindra XUV700 buyers, affordability is always a concern. The XUV700’s price cut makes it easier for them to step into the SUV world without feeling the financial pinch. It bridges the gap between mid-range SUVs and premium ones, offering the best in class.
Power and Performance Stay the Same
Of course, the tax cut doesn’t change the core strengths of the Mahindra XUV700. It still comes with powerful 2.0-litre turbo-petrol powerfull engine and 2.2-litre diesel engines, both paired with manual and automatic engine options. The diesel also offers multiple driving modes, making it a versatile engine for highways and city drives. The Mahindra XUV700 continues to deliver a blend of strength, refinement, and efficiency.
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Final Thoughts
The Mahindra XUV700 was already a strong contender in India’s SUV market, but now, after the GST reform, it has become an even smarter purchase. The reduced price makes it accessible to more families, more adventurers, and more dreamers who wanted a car that truly feels like an upgrade.
This isn’t just about numbers; it’s about emotions. It’s about giving buyers the joy of owning a premium Mahindra XUV700 without stretching their limits. With its bold looks, advanced technology, powerful engines, and now more attractive pricing, the Mahindra XUV700 continues to prove why it deserves its popularity.
Disclaimer
The information shared here is based on publicly available reports and price updates after the GST change. Prices may still vary depending on city, variant, and dealership offers. Buyers are advised to confirm the exact on-road price and specifications from official Mahindra dealerships before making a purchase decision.