Mahindra XUV700 Sales Jump 40 % After Big Price Cut

Mahindra, on August 10, announced a price cut of up to Rs. 2.2 lakh for the popular XUV 700. This was done to boost the sales of the SUV amid the slowdown in sales in the Indian car market. This move has been proven worth for Mahindra as they recently revealed that the orders for the car went up by 40%.

Rajesh Jejurikar, Executive Director and CEO of Auto and Farm sectors at Mahindra, announced that the XUV700 received an average of 8,000 bookings per month in the first quarter of FY2025. As of July 1, Mahindra had 13,000 pending orders for the XUV700. Following a price reduction for the top AX7 and AX7 Luxury Pack trims, the company saw over 10,000 new bookings for the XUV700 in July.

Jejurikar noted that the prices for the AX7 and AX7 L variants had increased by nearly Rs 4 lakh since their launch due to rising “commodity prices.” However, through “value engineering” and the normalization of semiconductor prices after a prolonged shortage, Mahindra managed to temporarily reduce the prices of the AX7 and AX7 K trims by up to Rs 2.20 lakh as part of a four-month promotional offer.

Jejurikar said,

Jejurikar further added that, due to the substantial increase in sales after the price cuts, they do not expect the discounts to have a huge impact on the financials of the company.

The price cuts are covered by the increase in sales and decrease in cost of production which went up due to the semiconductor shortage. Over the years, the brand has increased the production of the XUV 700 to 10,000 units from 3,500 units at the launch date.

The AX7 trim and the AX7 L trim of the XUV 700 is now priced at Rs. 19.49 lakh and Rs. 24.99 lakh after the price cut of Rs. 1.9 lakh and Rs. 2 lakh respectively.

In the Indian market, the Mahindra XUV 700 rivals other popular players such as the Hyundai Alcazar which is pending for a facelift, Toyota Innova Hycross, Mahindra Scorpio N, Maruti Suzuki Invicto, Toyota Innova Crysta, MG Hector Plus, Tata Safari and the upcoming Maruti Suzuki Grand VItara 7 seater and the Toyota Urban Cruiser Hyryder 7 seater.

Furthermore, the brand is gearing up for the grand launch of much awaited Thar 5 door on 15th of August. This new SUV by Mahindra will be sold by the name of Thar Roxx. The Roxx will sit above the 3 door model in terms of positioning. As for pricing, expect a number in the 12-13 lakh range. That will give the Roxx a solid start, and also pull some buyers away from the likes of the 3 door Thar and for that matter lower trims of the Scorpio-N.