Mahindra XUV700 Is India's Best Selling Full-Size SUV: 3 Lakh Sales In Less Than 4 Years
The Mahindra XUV700 has crossed a major milestone with over three lakh units sold since its launch in August 2021. This makes the XUV700 India's best selling full-sized SUV, and this figure is more than just a number. It signifies the growing preference for SUVs and the rising trust in homegrown carmakers like Mahindra. In many ways, the XUV700's journey captures how Indian buyers are thinking differently about cars, particularly cars from homegrown automakers.
A Steady Climb to the Top
The XUV700’s sales graph shows steady progress. From selling 50,000 units in its first year, the SUV reached the one-lakh mark in 21 months. It doubled that to two lakh units by the 33rd month, and hit the three-lakh milestone in just seven more months. That pace shows growing popularity despite strong competition.
In June 2025 alone, Mahindra sold 6,198 units of the XUV700, up 4.6% from the previous June. On average, the SUV has sold 6,644 units per month over the last eight months. These are solid numbers that point to consistent demand, not just one-time spikes.
Why Diesel Still Wins
One of the most surprising parts of the XUV700’s success is the popularity of its diesel versions. While the auto industry as a whole is shifting towards petrol and electric vehicles, the XUV700 bucks that trend. In FY2024–25, diesel variants made up 75% of total sales, up from 70% the year before.
May 2024 was a clear example: out of total XUV700 sales that month, 3,845 were diesel units, compared to just 1,163 petrol units. This tells us that many buyers still value diesel engines for their fuel efficiency and better performance on long drives.
Smart Pricing Pays Off
A big push in sales came from Mahindra’s well-timed pricing changes. In October 2024, the XUV700 crossed the 10,000 monthly sales mark for the first time, touching 10,435 units. This came after Mahindra launched a more affordable AX5 Select variant at ₹16.89 lakh and slashed prices by over ₹2 lakh on the AX7 and AX7L variants.
As a result, the AX7 range, which earlier started at ₹21.29 lakh, became available from ₹19.49 lakh. These changes made higher variants more accessible, pulling in buyers who may have previously looked at rivals.
The SUV Wave Is Getting Bigger
The success of the XUV700 is part of a much larger shift. SUVs now make up 65% of all passenger vehicle sales in India, a huge jump from just 21% ten years ago. In FY2025 alone, utility vehicle sales touched 2.79 million units - more than the entire passenger car market of FY2016.
The SUV market saw a 23% rise in volume and a 39% jump in value in FY2024. This points to a strong shift in buyer preferences; people are not just looking for transport, but for cars that match their lifestyle, personality, and aspirations.
Competition and Positioning
In Mahindra’s own stable, the XUV700 is the fourth best-selling model after the Scorpio twins, XUV300/3XO, and Bolero. In the market, its main rivals include the Tata Harrier (starting ₹15 lakh), Hyundai Creta (₹11.11 lakh), and MG Hector.
But with a starting price of ₹14.49 lakh and a powerful 197 bhp engine, the XUV700 offers more value than many of its rivals. For comparison, the Creta offers 113 bhp and the Harrier 168 bhp.
Bigger Plans, Bigger Factories
Mahindra is gearing up for even more demand. The company plans to increase monthly production from 61,500 to 85,000 units by FY2026. Its annual capacity will cross one million units, with a new manufacturing plant scheduled for FY2028.
Specific plans include adding 9,000 more units per month for the 3XO and 10,500 units for the ROXX. A brand-new platform is also coming, which will be unveiled on August 15. The Chakan plant will get an extra 1.2 lakh units of capacity per year to support this.
What’s Coming Next
The XUV700’s first major facelift is expected in early 2026. Spy photos suggest a new triple-screen dashboard layout similar to the upcoming XEV 9e, plus exterior tweaks and more features. While electric tech is expected to make its way into the update, the reliable petrol and diesel engine options will stay.
The three-lakh milestone is a sign of more than just strong sales, it reflects the changing face of the Indian car market. SUVs are clearly the new favourite, and Mahindra is riding this wave confidently. With upcoming facelifts, better pricing, and new tech on the way, the XUV700 looks ready to keep climbing.