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The Government of India’s recent decision to cut down the Goods and Service Tax (GST) rates and abolish compensation cess has had a positive impact on the automotive industry. As a result of this, prices of most automobiles will go down in the next few days. Mahindra has already passed on the latest benefits from the reduced taxes to the customers, starting 6 September 2025.

Mahindra XUV700 prices reduced

The company has now revealed variantwise price saving for selected models in its lineup, including the XUV700. Now, the Chakanbased carmaker is yet to reveal the exact prices for each variant but the company has listed out how much customers will save depending on the trim they choose. The details are mentioned in the table below.

Mind you, these are only tentative reduced prices of the XUV700. For the exact drop in pieces, prospective buyers should connect with a nearby Mahindra showroom. As shown in the table above, every trim except the base variant is priced over Rs 1 lakh lower.

The Mahindra XUV700 is classified as an SUV, with a length exceeding 4,000 mm and an engine capacity above 1,500cc. This segment earlier attracted a 48 percent GST (28 percent GST plus 20 percent cess). Under the revised structure, the XUV700 now falls under a flat 40 percent GST, resulting in customer savings of 8 percent.

New GST rates: More affordable cars

The latest GST revision has made cars across all categories more affordable. Small cars under 4 metres, with petrol engines up to 1,200cc or diesel engines up to 1,500cc, will now attract 18 percent GST instead of 28 percent, making them 5–13 percent cheaper. Larger cars over 4 metres, with bigger petrol or diesel engines, will be taxed at 40 percent GST compared to the earlier 28 percent.

However, with the cess removed, even these vehicles will see a price drop of 3–10 percent. Overall, the revised structure ensures reduced prices for both small and large cars, promising better affordability for buyers across segments.