Introduction: Mahindra XUV700 Streamlines Its Lineup
As of May 6, 2025, Mahindra & Mahindra has made a bold move by discontinuing the 5-seater variants of its flagship SUV, the Mahindra XUV700. This decision, reported by Autocar India, shifts the XUV700 to exclusively 6- and 7-seater configurations, with the starting price now at Rs 14.49 lakh (ex-showroom), up from Rs 13.99 lakh. This strategic pivot reflects Mahindra’s response to evolving consumer preferences and market dynamics in India’s competitive SUV segment. The move, while streamlining the lineup, has sparked discussions about its implications for buyers and Mahindra’s positioning against rivals.
Background: The Rise of Mahindra XUV700
Since its launch in 2021, the Mahindra XUV700 has been a cornerstone of Mahindra’s success, with over 2.5 lakh units sold by March 2025, as noted by CarDekho. Positioned as a premium SUV, the XUV700 combines stylish design, robust performance, and cutting-edge technology, making it a favorite among Indian families. Its versatility, competitive pricing, and high safety standards have solidified its reputation.
Key Features and Specifications
The Mahindra XUV700 offers two engine options:
- 2.0-litre Turbo Petrol: Produces 197 bhp and 380 Nm of torque.
- 2.2-litre Diesel: Available in two tunes—153 bhp with 360 Nm and 182 bhp with 420 Nm (450 Nm for AWD variants).
Both engines can be paired with a 6-speed manual or automatic transmission, catering to varied driving preferences. The SUV’s interior is a highlight, featuring:
- Dual 10.25-inch screens for infotainment and instrumentation.
- Wireless Android Auto and Apple CarPlay, with Amazon Alexa integration.
- A Sony 3D sound system with 12 speakers in higher trims.
- A panoramic sunroof, dual-zone climate control, and ventilated front seats.
Safety is a strong suit, with a 5-star Global NCAP rating, seven airbags, electronic stability control, and ADAS features like automatic emergency braking and adaptive cruise control. The XUV700’s spacious cabin, with flat-folding rows for ample luggage space, enhances its appeal for family buyers.
Market Positioning
The Mahindra XUV700 competes with SUVs like the Tata Safari, Hyundai Alcazar, and MG Hector Plus, all of which offer 6- and 7-seater options. Its price range of Rs 14.49 lakh to Rs 25.89 lakh (ex-showroom) positions it as a value-driven choice in the premium SUV segment, as highlighted by CarWale.
Discontinuation Details: What Changed?
Mahindra has delisted all 5-seater variants of the XUV700 from its official website, affecting the MX, AX3, and AX5 trims. Previously, the XUV700 was available in 5-, 6-, and 7-seater configurations, catering to diverse needs. Now, with 15 variants discontinued, the SUV is offered in 43 variants, including the recently launched Ebony Edition, as per Autocar India.
Impact on Pricing
The discontinuation has raised the entry-level price from Rs 13.99 lakh to Rs 14.49 lakh (ex-showroom) for the 7-seater MX petrol manual variant. The top-end AX7 L diesel automatic Ebony Edition remains the priciest, reflecting Mahindra’s focus on feature-rich models.
Affected Variants
The following table lists some of the discontinued 5-seater variants with their last recorded prices:
| Variant | Last Recorded Price (Rs, lakh, ex-showroom) |
|---|---|
| 2.0P MX MT | 13.99 |
| 2.2D MX MT | 14.59 |
| 2.0P AX3 MT | 16.39 |
| 2.2D AX5 MT | 18.29 |
| 2.0P AX5 AT | 19.29 |
Source: Autocar India
Reasons for Discontinuation
Industry reports, including those from MotorOctane and Ackodrive, suggest that the 5-seater variants were discontinued due to:
- Underwhelming Sales: The 5-seater models, limited to MX and AX5 trims, did not attract significant buyer interest.
- Preference for 7-Seater Variants: Consumers favored the 7-seater AX7 and AX7 L trims, which offer advanced features like 18-inch alloy wheels, ADAS, leatherette seats, and a 360-degree camera.
- Feature Disparity: The 5-seater variants lacked premium features such as side airbags, TPMS, electric driver’s seat with memory, and dual-zone climate control, making them less appealing.
ABP Live notes that the popularity of top-end trims, driven by their comprehensive equipment list, influenced Mahindra’s decision. The company appears to be aligning its offerings with the growing demand for spacious, feature-packed SUVs.
Market Analysis: Implications for Consumers and Competitors
Consumer Impact
The shift to 6- and 7-seater configurations means that the Mahindra XUV700 now caters primarily to larger families or buyers needing extra seating. The base 7-seater MX variant at Rs 14.49 lakh offers more value for those requiring additional seats, but the higher entry price may deter budget-conscious buyers seeking a compact SUV. Customers who preferred the 5-seater for its slightly better boot space or lower cost may now consider alternatives like the Hyundai Creta or Kia Seltos, which continue to offer 5-seater options.
Competitive Landscape
The Mahindra XUV700’s focus on larger configurations aligns it more closely with competitors like:
- Tata Safari: Starts at approximately Rs 15.49 lakh, offering 6- and 7-seater layouts.
- Hyundai Alcazar: Priced from Rs 16.30 lakh, also available in 6- and 7-seater options.
- MG Hector Plus: Competes in a similar price bracket with multiple seating configurations.
By eliminating 5-seater variants, Mahindra strengthens its position in the family SUV segment but risks losing buyers who prioritize compact layouts. Rivals offering 5-seater models may gain an edge in catering to smaller households or urban buyers.
Strategic Benefits for Mahindra
Discontinuing the 5-seater variants likely streamlines Mahindra’s production and inventory management, reducing complexity and potentially shortening waiting periods for popular models. This move also positions the XUV700 as a dedicated family vehicle, reinforcing its appeal to a key demographic. Additionally, ABP Live suggests that a major refresh for the XUV700 is in the pipeline, which could introduce updated styling and features, further enhancing its competitiveness.
Consumer Trends
The Indian SUV market is witnessing a surge in demand for larger vehicles with versatile seating and advanced technology. The preference for 7-seater SUVs reflects the needs of extended families and those seeking multi-purpose vehicles for both urban and rural use. Mahindra’s decision taps into this trend, ensuring the XUV700 remains relevant in a dynamic market.
Public and Expert Reactions
X posts from automotive enthusiasts and media outlets provide insight into public sentiment:
- An X post by @autocarindiamag on May 6, 2025, announced the discontinuation, garnering significant views and indicating high public interest.
- @HTAutotweets emphasized the XUV700’s strengthened family vehicle positioning, suggesting positive reception of the move (X post).
- Some posts, like one from @abpnadu, hinted at buyer reluctance for the 5-seater due to its limited appeal compared to higher trims (X post).
While no official statement from Mahindra was found, industry experts cited in MotorOctane and Ackodrive agree that the decision aligns with market realities, prioritizing profitability and consumer demand.
Conclusion: The Future of Mahindra XUV700
Mahindra’s discontinuation of the 5-seater XUV700 variants marks a strategic shift toward catering to the growing demand for spacious, feature-rich SUVs. By focusing on 6- and 7-seater configurations, Mahindra reinforces the XUV700’s position as a premium family vehicle, competing head-on with rivals like the Tata Safari and Hyundai Alcazar. While the higher starting price and lack of 5-seater options may limit appeal for some buyers, the move streamlines production and aligns with market trends.
Looking ahead, rumors of a forthcoming XUV700 refresh, as hinted by ABP Live, suggest Mahindra is preparing to keep the model competitive with updated features and styling. For now, the Mahindra XUV700 remains a compelling choice for families seeking a versatile, safe, and technologically advanced SUV, with a renewed focus on larger seating capacities.
