The Indian government’s recent GST 2.0 update, effective from September 22nd, has led to a reduction in Goods and Services Tax rates for all cars. This includes the removal of the compensation cess, a move that benefits the automotive sector. Consequently, Mahindra has adjusted the prices of its vehicles, starting September 6, 2025, to reflect these changes.
Mahindra is offering price reductions on selected models, including the popular XUV700, with savings varying across different variants. While the specific new prices for each XUV700 variant are forthcoming, the company has provided insights into the potential savings customers can enjoy. Prospective buyers are advised to consult their local Mahindra dealerships for precise and up-to-date pricing information.
**Price Reduction Summary**
| Mahindra XUV700 Model | Ex-Showroom Price Cut |
|—|—|
| 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 reduction in GST has significantly impacted the pricing of the XUV700, an SUV that falls into the category of vehicles exceeding 4,000 mm in length and with an engine capacity above 1,500cc. Previously, this segment incurred a 48% GST, comprising 28% GST and a 20% cess. With the new GST framework, the applicable GST is now 40%, resulting in an 8% saving for consumers. The ex-showroom price range for the SUV is now between ₹14.49 lakh and ₹25.89 lakh.