In a significant revision of its product strategy, Mahindra has officially phased out all 5-seater versions of the Mahindra XUV700. The move is a big change in the way the company would like to position one of its best-selling premium SUVs in India. The action will impact both prospective buyers and current owners who have already been considering the 5-seater version for its value proposition.
Since its introduction in 2021, the Mahindra XUV700 has been one of the dominant players in the mid-size SUV segment, with premium features, multiple powertrain options, and advanced safety options. It came in both 5-seater and 7-seater capacities, so consumers could choose on the basis of what they need and can support. But now that freedom has been curtailed, and the 5-seater layout is officially available no more.
Let us see in detail why this decision was taken, how it impacts customers, and what the options are in the future.
The Arrival of the Mahindra XUV700
As a successor to the volume-leading XUV500, the Mahindra XUV700 came with great expectations and delivered the majority of them. With aggressive design, class-leading features, and heavy-duty engines, it quickly became one of the most talked-about SUVs in the country.
Its list of features boasted segment-firsts such as Advanced Driver Assistance Systems (ADAS), dual 10.25-inch display setup, panoramic sunroof, and a premium sound system by Sony. These features made it an attractive option not only against Indian competitors such as Tata Safari and MG Hector Plus, but even some international rivals.
The XUV700 lineup initially had variants under two major lines:
- MX Trim (Base)
- AX Series (AX3, AX5, AX7, AX7L)
The 5-seater variants were available in MX, AX3, and AX5 trim levels, while AX7 and AX7L were largely sold as 7-seaters or with 6-seater optional configurations.
Also Read: Mahindra and Mahindra's Big Leap: New Vehicle Platform, Greenfield Factory, and EV Future
Which Variants Are Impacted?
The following 5-seater models of the Mahindra XUV700 have now officially ceased production:
- MX Petrol Manual
- MX Diesel Manual
- AX3 Petrol/Diesel (Manual & Automatic)
- AX5 Petrol/Diesel (Manual & Automatic)
These variants were priced competitively, with the base MX petrol priced at approximately ₹13.99 lakh (ex-showroom). The AX5 Diesel Automatic, which is among the best of the 5-seater line-up, was priced at approximately ₹19.89 lakh.
With their elimination, the entry point for the XUV700 line-up has essentially moved up, pushing price-conscious buyers to other models or variants.
Why Mahindra Took This Step
The phasing out of the 5-seater options is not a spontaneous decision. It appears to be part of a carefully thought-out strategy based on several considerations.
1. Customer Demand Moving towards 7-Seaters
- Statistics reveal that a significant majority of XUV700 buyers prefer the 6- or 7-seat versions. Indian families, especially those in rural and semi-urban areas, are likely to appreciate space for seating and flexibility. With more and more customers opting for three-row variants, it is no surprise that Mahindra emphasizes high-priority models.
2. Reducing Manufacturing Complexity
- Having numerous combinations of engines, transmissions, options, and seat configurations makes manufacturing and logistics more complex. Phasing out the 5-seater variants simplifies its manufacturing complexity, its inventory load, and rationalizes operations at the dealer level.
3. Positioning the XUV700 as a Premium SUV
- Another likely reason is brand positioning. The lower entry 5-seater trims of the XUV700 were denied some features that make the Mahindra XUV700 experience what it is, i.e., ADAS or twin-screen infotainment. Skipping them allows Mahindra to position the XUV700 as a high-tech, family-focused premium SUV — and not just a base version with a premium price tag.
What’s Left in the Lineup?
In the future, all Mahindra XUV700 models will be offered only in 6- or 7-seater configurations. The new lineup is as follows:
- MX Diesel (7-seater)
- AX5 & AX5 S (7-seater)
- AX7 & AX7 L (6- and 7-seater)
- AX7 L Ebony Edition (6- and 7-seater)
This shift makes more feature-packed configurations accessible to customers by default, albeit at a higher price.
Impact on Buyers
This shift will affect specifically the customers who were considering the base or mid-range 5-seater variants. Here's how:
Advantages:
- More focus on more practical 6/7-seater layouts
- Enhanced supply of high-priority trims
- Simplified decision-making for customers
Disadvantages:
- Increased base price for entry-level XUV700 buyers
- No 5-seater variant for city drivers or small families
- Limited engine and transmission versatility
Mahindra XUV700 Price in India: What’s the New Entry Point?
Since the 5-seater versions are no longer available for purchase, the new start Mahindra XUV700 price in India is also higher now. The entry-level model MX Diesel 7-seater, being the new entry variant now, starts at around ₹14.59 lakh (ex-showroom). That's higher than the old ₹13.99 lakh MX petrol 5-seater version.
Buyers who were seeking an entry-level, budget-friendly option in the XUV700 series will now either have to shell out more or look at other models in Mahindra's lineup or those from competing brands.
Alternatives to Look Out for 5-Seater Buyers
If your mind was fixed on a 5-seater SUV in the ₹14–₹20 lakh bracket, here are some good alternatives to look out for:
- Tata Harrier – Sturdy 5-seater SUV with rugged appearance and features from the future
- Hyundai Creta – Model of the best-of-all varieties with petrol, diesel, and hybrid offering
- Kia Seltos – Stylish, tech-laden, and cheap
- MG Hector – Feature-bloated and generous
- Mahindra Scorpio-N Z4/Z6 – Even if you remain loyal to a particular brand but want something rugged
Final Thoughts
The discontinuation of the 5-seater Mahindra XUV700 variants is more than a product shift—it represents a shift in the manner in which Mahindra is repositioning its premium SUV strategy. While this aggregates options for some consumers, it also simplifies the XUV700's positioning as a premium, technology-loaded, family SUV.
Price-conscious customers will likely have to look elsewhere, but for others who desire a future-proof, well-equipped, roomy SUV, the Mahindra XUV700 is still a tall order in the class.
While the customer requirements are shifting and competition is hardening, this theatrical bet by Mahindra could just prove handy in rationalizing operations and ensuring the XUV700 remains a flagship product focused on precisely what consumers are most interested in — space, safety,
Also Read: April Car Sales 2025: SUVs and EVs Lead the Way as Small Cars Stall
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