MAHINDRA XUV700 Price CUT Explained: Mahindra Slashes Prices by ₹1.44 Lakh After GST Cut

Mahindra car prices drop after GST cuts! Save up to ₹1.44 lakh on XUV700, Thar, Scorpio, Bolero & more. Full variant-wise details inside.

If you’ve been waiting to buy a Mahindra SUV but found prices just out of reach, here’s some good news. With the Government of India slashing GST rates on cars and removing the compensation cess, Mahindra has announced major price cuts across its lineup — from the popular XUV700 to the rugged Thar, and the ever-reliable Scorpio and Bolero.

For Indian buyers, this move isn’t just about saving money — it’s about accessibility. SUVs that once seemed slightly out of budget are now within reach. But what exactly has changed in the tax structure, how much can you save on each Mahindra car, and what does this mean for the auto industry in India? Let’s break it down.

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📉 Why Mahindra Car Prices Have Dropped After GST Cuts

The GST reform has simplified taxation in the auto sector. Earlier, large SUVs (over 4 metres in length and engines above 1,500cc) were taxed at a whopping 48% (28% GST + 20% cess). Under the new structure, this has been rationalised to a flat 40% GST.

This 8% reduction directly translates into savings of ₹88,000–₹1.44 lakh on Mahindra models, depending on the variant.

But it’s not just SUVs. Small cars under 4 metres with petrol engines up to 1,200cc or diesel engines up to 1,500cc now attract 18% GST instead of 28%, making them 5–13% cheaper.

👉 What This Means for Buyers

• Lower upfront costs — reducing ex-showroom prices
• Cheaper loans — since down payments and EMIs shrink
• Broader accessibility — cars that were aspirational now become practical choices

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🚙 Mahindra XUV700: Biggest Beneficiary of GST Cuts

The Mahindra XUV700, already a best-seller, has become significantly more affordable. Depending on the variant, buyers can now save between ₹88,900 and ₹1.43 lakh.

🔎 Variant-Wise Savings (Tentative)

Variant	Old GST + Cess	New GST Rate	Price Drop
MX	48%	40%	₹88,900
AX3	48%	40%	₹1,06,500
AX5 S	48%	40%	₹1,10,200
AX5	48%	40%	₹1,18,300
AX7	48%	40%	₹1,31,900
AX7 L	48%	40%	₹1,43,000

With ex-showroom prices now ranging from ₹13.66 lakh to ₹23.70 lakh, the XUV700 becomes even more competitive against rivals like the Tata Safari, Hyundai Alcazar, and MG Hector.

💡 Key Takeaway: The higher the trim level, the bigger the savings — making premium variants like AX7 Luxury Ebony 4WD more value-for-money than ever.

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🛻 Other Mahindra Models That Got Cheaper

It’s not just the XUV700. Mahindra has rolled out price cuts across its SUV portfolio.

• Bolero & Bolero Neo → Cheaper by up to ₹1.27 lakh
• XUV3XO → Petrol variants down by ₹1.40 lakh, diesel trims by ₹1.56 lakh
• Thar → 2WD diesel reduced by ₹1.35 lakh, 4WD diesel by ₹1.01 lakh, Roxx by ₹1.33 lakh
• Scorpio Classic → Down by ₹1.01 lakh
• Scorpio-N → Massive savings of up to ₹1.45 lakh

This makes Mahindra’s SUV lineup even stronger in terms of value-for-money positioning.

👉 Imagine this: The money you save on a Scorpio-N could fund a family vacation to Goa, a year’s worth of fuel, or even your car insurance for several years.

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🔎 Why GST Cuts Matter for Indian Car Buyers

For years, high GST + cess on SUVs kept prices elevated. Buyers often complained that while India is an SUV-loving country, government taxes made these vehicles disproportionately expensive.

With the cess gone and GST streamlined, affordability improves — and so does consumer sentiment.

Wider Impact:

• Boost for rural and semi-urban markets (where Bolero and Scorpio dominate)
• Encouragement for first-time SUV buyers
• Stronger competition — as rivals like Tata and Hyundai will likely announce similar cuts

💬 In simple terms: Think of it like getting a big seasonal discount at your favourite store — only this time, it’s backed by government policy and not just a marketing gimmick.

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📊 The Bigger Picture: What This Means for India’s Auto Industry

The GST cut is not just a short-term benefit. It could reshape the auto sector in 3 ways:

1. Higher Demand: Lower prices = more sales. SUVs may see an even steeper growth curve.
2. Competitive Pricing Wars: Expect rivals like Tata Motors, Hyundai, Kia, and Toyota to match price cuts.
3. Economic Ripple Effect: More car sales mean higher demand for financing, fuel, insurance, and accessories.

For Mahindra, this is a golden opportunity. With blockbuster models already dominating sales charts, a price cut could cement its leadership in the SUV space.

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🧠 What You Should Remember

• GST cuts = real savings — not just headline numbers
• XUV700 buyers save the most, up to ₹1.44 lakh
• Other Mahindra SUVs also cheaper, making them attractive across budgets
• Industry-wide impact — competitors will likely follow suit

📣 Conclusion & Call to Action

For Indian buyers, this GST-driven price cut feels like a festive season gift arriving early. Whether you’ve been eyeing the XUV700, the tough Thar, or the iconic Scorpio, this is one of the best times in years to make that purchase.

🚗💨 Question for You: With prices dropping by over ₹1 lakh on many Mahindra models, which SUV would you choose — and why?