India’s revised GST slabs are here, and Mahindra has wasted no time passing on the benefits to customers. The Mahindra XUV700—a premium large SUV—now comes with a price reduction of up to ₹1.43 lakh, depending on the variant. The cuts take effect immediately, ahead of the new GST rates officially rolling out on September 22, 2025.
What Changed: GST Rate for Large SUVs
- Earlier, large SUVs like the XUV700 were taxed at an effective 48% rate, combining 28% GST + up to 20% cess.
- Under the new regime, these will now attract a flat 40% GST, with the cess removed. This straight-tax cut is what’s driving the price reductions.
Variant-Wise Savings: How Much You Save, Trim by Trim
Here are the savings reported by Mahindra for different trims of the XUV700, based on the ex-showroom price changes:
| Trim | Savings After GST Cut |
|---|---|
| MX | ~ ₹ 88,900 |
| AX3 | ~ ₹ 1,06,500 |
| AX5 S | ~ ₹ 1,10,200 |
| AX5 | ~ ₹ 1,18,300 |
| AX7 | ~ ₹ 1,31,900 |
| AX7 L | ~ ₹ 1,43,000 |
So even mid-to-higher variants are getting significant drops—over ₹1 lakh off in many cases.
What Exactly This Means for Buyers
- Good timing: If you were considering buying an XUV700, this reduction improves affordability significantly. The timing is just before the formal government implementation.
- Variant choice matters: Savings differ based on variant (trim) so picking a higher-trim gets you more benefit in absolute rupees. The AX7 L gets the highest cut among listed trims.
- Overall cost advantage: Because the ex-showroom price drops, other costs tied to that base price (like registration, insurance, etc.) will also decrease somewhat.
Broader Impact and Market Context
- Mahindra is among the first carmakers to enforce the new GST rates before their formal effective date (September 22) in many dealerships.
- This move is part of wider auto-industry changes: many SUVs and large premium cars are seeing price drops ranging from ₹1-3 lakh+ following the restructuring of the GST slab.
- Helps Mahindra stay competitive during the festive period when buyers are more price sensitive.
Things to Verify Before Buying
- Confirm ex-showroom price of the variant you are interested in, at your city-dealer, because there may still be local deviations.
- Ask whether the quoted price already includes the new GST slab. Sometimes old stock has older pricing.
- Check for additional offers or discounts, because sometimes dealers combine GST savings with their own offers.
- Don’t forget non-tax costs (insurance, registration, etc.) will also shift a little due to the GST change, so compute the full on-road cost.
Final Word
The GST overhaul has brought down prices of large SUVs like the XUV700 significantly. With up to ₹1.43 lakh savings on top variants, this is a strong incentive for buyers to act soon. If you were waiting for more value or better pricing, now looks like a good moment.