If you’ve been eyeing the popular Mahindra XUV700, there’s great news for you! In 2025, the government’s revised Goods and Services Tax (GST) rules have made this SUV more affordable than ever. Thanks to a significant reduction in the GST rate, Mahindra has lowered the prices across all variants of the XUV700, making it a better deal for buyers.
Let’s dive into what this GST rate change means and how it benefits you if you’re planning to buy an XUV700.
What Changed in the GST for Mahindra XUV700?
Earlier, the Mahindra XUV700 was taxed at a high rate because of its size and engine capacity. It faced a combined tax of 48%, which included a 28% GST plus an additional 20% cess. This high tax pushed the vehicle’s prices up, making it less affordable for many buyers.
But in September 2025, the government revised the tax structure for larger SUVs like the XUV700. The new GST rate is now a flat 40%, with the extra cess removed. This means lower taxes on the vehicle, and those savings have been passed directly to customers by Mahindra.
How Much Will You Save?
Thanks to this GST cut, Mahindra has reduced the prices of all XUV700 variants by a significant amount — up to ₹1.43 lakh for the top-end models! Here’s a quick look at the approximate savings on different trims:
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MX Variant: Price cut of around ₹88,900
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AX3 Variant: Price cut of about ₹1,06,500
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AX5 S Variant: Price cut near ₹1,10,200
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AX5 Variant: Price cut around ₹1,18,300
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AX7 Variant: Price cut of ₹1,31,900
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AX7 L Variant: Biggest price cut of up to ₹1,43,000
This means buyers can now enjoy owning a powerful, feature-rich SUV like the XUV700 at a much more attractive price.
When Did This Change Take Effect?
The new GST rates and reduced prices came into effect on September 6, 2025. Any bookings or purchases made after this date will benefit from the updated, lower pricing.
If you’ve been waiting to buy the XUV700, now is a fantastic time to visit your nearest Mahindra dealership and check out the new prices.
Why Is This Important for Buyers?
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More Affordable Luxury: The XUV700 is known for its advanced features, stylish design, and strong performance. Lower prices mean more people can experience this premium SUV without burning a hole in their pockets.
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Better Value for Money: You get the same great vehicle, but with significant tax savings passed on to you.
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Boost to SUV Market: The reduced GST rates could encourage more customers to consider bigger SUVs, helping Mahindra compete strongly against other manufacturers.
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Transparent Pricing: Mahindra’s quick adjustment of prices after the GST change shows their commitment to passing benefits directly to customers.
BOOK A TEST DRIVE
What Should You Do Next?
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Visit a Dealership: Check out the Mahindra XUV700 in person and get a quote with the latest GST benefits.
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Compare Variants: With the price cuts, even higher-end variants might be more affordable than before.
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Check Financing Options: Lower prices can also mean lower EMI if you plan to finance your purchase.
Book Early: Take advantage of the new pricing before any further changes.
How to Buy the Mahindra XUV700 in 2025
If you’re ready to own the Mahindra XUV700, here are the ways you can buy it:
1. Visit a Mahindra Showroom
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Go to your nearest Mahindra dealership.
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Check out different variants (MX, AX3, AX5, AX7, AX7 L).
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Take a test drive.
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Get the on-road price including taxes, insurance, and registration.
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Book your preferred model by paying a booking amount (usually ₹21,000 or as per dealer policy).
2. Book Online via Mahindra’s Official Website
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Visit https://auto.mahindra.com
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Choose “XUV700” from the car lineup.
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Select the variant, color, and fuel type (Petrol or Diesel).
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Enter your location details to find the nearest dealer.
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Pay the booking amount securely online.
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Get a confirmation and dealer follow-up for delivery.
Source : Google
3. Use Car Buying Platforms (Optional)
You can also book the XUV700 through trusted auto websites like:
These platforms often offer:
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Exchange offers
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EMI calculators
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Home test drives
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Instant booking support
Financing Options
Most dealerships and banks offer attractive loan and EMI options:
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Up to 85%-90% loan of the on-road price
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EMIs starting around ₹15,000–₹25,000/month (depending on model and down payment)
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Interest rates starting from 8.5% – 10.5% p.a.
You can check with:
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HDFC Bank
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ICICI Bank
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Axis Bank
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Mahindra Finance
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SBI, and others
Final Thoughts
The GST rate reduction on the Mahindra XUV700 is fantastic news for car buyers in 2025. It brings down the cost of one of India’s most sought-after SUVs, making it accessible to more families and adventure seekers.
If you’ve been waiting for the right moment to invest in a spacious, stylish, and powerful SUV, this is it! With savings up to ₹1.43 lakh, the Mahindra XUV700 offers not just great features and performance, but also excellent value.
Ready to drive home your dream SUV? Head to the nearest Mahindra showroom and explore the new prices today!
