Mahindra XUV700 Prices Drop by Up to ₹1.43 Lakh Following GST Rate Revision

Mahindra & Mahindra (M&M) has passed on significant savings to customers on the XUV700 SUV, following the recent Goods and Services Tax (GST) rate overhaul announced by the GST Council on September 3, 2025.

Effective from September 6, 2025, the tax rate on large SUVs like the XUV700 has been rationalized from an earlier combined 48% (28% GST plus 20% cess) to a flat 40% GST rate. This move has translated into a price reduction of up to ₹1.43 lakh for the XUV700, depending on the variant.

Specifically, the XUV700 falls under the SUV category that is subject to this revised GST due to its size (length over 4 meters) and engine capacity (above 1,500 cc). Buyers now benefit from an 8% lower effective tax rate, directly reducing the on-road prices of the vehicle.

Here’s a variant-wise look at the savings customers can expect on the Mahindra XUV700:

Moreover, Mahindra has extended the full benefits of the GST rate cuts to all its internal combustion engine (ICE) SUV portfolio, including popular models such as the Scorpio-N, Thar Roxx, and the XUV3XO, with price reductions ranging from around ₹1.01 lakh to ₹1.56 lakh depending on the model and variant.

The company’s proactive approach, implementing these new prices immediately after the GST council announcement, contrasts with some manufacturers who are adopting the tax cuts only from later dates, ensuring customers enjoy instant cost benefits.

This development is expected to boost customer demand in the competitive large SUV segment by making Mahindra's offerings more affordable and attractive in a price-sensitive market.