Following the Indian government’s decision to reduce GST rates on all cars, which took effect on September 22nd, Mahindra is offering reduced prices on its vehicles. This move includes the removal of the compensation cess on cars, benefiting the entire automotive industry. Mahindra began implementing the new prices on September 6, 2025.
The price cuts affect select vehicles, including the popular XUV700, with the amount of savings depending on the specific variant. While the exact new prices for each XUV700 variant are yet to be finalized, the company has provided information about the potential savings. To determine the exact price reduction for a specific model, customers should consult a local Mahindra dealership.
**Price Cut Breakdown**
| Mahindra XUV700 Model | Price Decrease (Ex-Showroom) |
|—|—|
| 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 |
The Mahindra XUV700, an SUV with dimensions exceeding 4,000 mm and an engine displacement above 1,500cc, benefits from the reduced GST. Previously taxed at 48% (28% GST plus a 20% cess), the new GST structure sets the tax at 40%. This translates to an 8% saving for buyers. The XUV700’s ex-showroom price now ranges from ₹14.49 lakh to ₹25.89 lakh.