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Here’s a rather interesting example of just how differently cars are priced in India and overseas markets. A 2025 Mahindra XUV700 is currently being heavily discounted in Australia, with the seven-seat SUV available for cheaper than a Suzuki Fronx sold in the country. And while the two cars aren’t really direct competitors, the comparison makes for some interesting reading. CarSales.AU reports that the Mahindra XUV700 is now Australia’s most affordable 7 seater, with a driveaway price tag of just AUD 29,900. In comparison, the Fronx sold in Australia starts from AUD 32,900.

The XUV700 was already one of Mahindra’s more aggressively priced SUVs when it went on sale in India. In Australia, however, it is positioned much higher up the market. The 2025 XUV700 AX7 with its 2.0-litre turbo-petrol engine was listed at AUD 29,990 drive-away (after discount), while the Fronx was priced at around AUD 28,990 (driveaway cost AUD 32,615) before on-road costs. But Mahindra is now clearing out older 2025-built XUV700 stock in Australia, and the discounts have been substantial.

The XUV700 is a considerably larger vehicle than the Fronx. It measures 4,695mm in length and 1,890mm in width, rides on a 2,750mm wheelbase and offers three rows of seating. The Fronx, meanwhile, is just under four metres long and is a five-seater. Under the XUV700’s bonnet is a 2.0-litre turbo-petrol engine developing 203hp and 380Nm, paired with a six-speed automatic gearbox.

The Australian-spec Fronx uses a much smaller 1.5-litre petrol engine with mild-hybrid assistance, producing 103hp and 137Nm. It also gets a six-speed automatic. So, if you simply compare size, engine and seating capacity, the XUV700 is in a completely different league. And that’s precisely what makes the deal interesting.

The answer is fairly straightforward. Mahindra is clearing 2025-built inventory in Australia. This is to make way for the updated XUV700 – called the XUV 7XO. There’s a AUD 10,000 price cut on 2025-built XUV700s, making the Indian SUV Australia’s cheapest seven-seater. This isn’t necessarily a reflection of the XUV700 suddenly becoming less desirable. It’s a fairly common strategy when dealers need to clear previous-model-year vehicles and make room for newer stock.

There is a similar phenomenon happening in India too, where dealers have been offering substantial discounts on older 2025-built cars. Mahindra itself offered benefits of up to **Rs 1.55 lakh on the XUV700 towards the end of 2025, while discounts on older inventory have become increasingly aggressive across the industry.

The other interesting part of this comparison is the Fronx. The small Suzuki is sold in Australia as a relatively premium compact SUV rather than as the mass-market product it is in India. The 2025 Fronx was priced at AUD 28,990 before on-road costs, while current pricing is around AUD 32,615 drive-away depending on the variant and market.

For that money, the Australian Fronx (which is made in India and exported to Australia) gets features such as a surround-view camera, wireless smartphone connectivity and a suite of driver-assistance systems. But it remains a small five-seater with a relatively modest engine. The XUV700, meanwhile, brings seven seats, 203 Bhp, 380Nm and considerably more space.

The bigger story here isn’t really about the Fronx. It is about how much value Indian-made SUVs can offer when they are exported to developed markets. However, this is totally dependent on the manufacturer. We’re saying this because the Australia-spec Fronx and XUV700 are both built in India. However, pricing strategy of both cars is quite different.

Mahindra has been steadily expanding its presence in Australia, and the XUV700 has been positioned as a relatively affordable way into a large seven-seat SUV. The current discount makes the proposition even more interesting.

Of course, a discounted 2025 XUV700 and a new Fronx aren’t an apples-to-apples comparison. The XUV700 is a much larger vehicle, while the Fronx has lower running costs and a much smaller footprint. But if you happen to be shopping in Australia and find a heavily discounted XUV700 at roughly Fronx money, the temptation to choose the big Mahindra would be pretty hard to ignore.