Since its launch in 2021, the Mahindra XUV700 has been a pillar of strength for Mahindra, with demand far exceeding supply for the better part of the last three years. However, with production having tripled since then, waiting periods for the XUV700 have come down, and availability is no longer an issue. In a bid to help the XUV700 maintain its sales momentum, Mahindra rolled out a substantial price cut for the top-spec AX7 and AX7 L variants at the start of July, and that led to a 40 per cent increase in fresh orders for the XUV700, the company has revealed.
Also Read: Mahindra XUV700 AX7 Prices Temporarily Slashed By Up To Rs 2.2 Lakh
Rajesh Jejurikar, ED & CEO – Auto and Farm sectors at Mahindra, revealed the XUV700 continued to receive around 8,000 monthly bookings on average in the first quarter of FY2025. Till July 1, Mahindra had 13,000 pending orders for the XUV700, and following the announcement of the price reduction for the top trims, Mahindra is understood to have received in excess of 10,000 bookings for the XUV700 in July.
Prices of top XUV700 variants rose post-launch as they utilised a higher amount of semiconductors, Jejurikar explained.
Jejurikar explained the prices of the AX7 and AX7 L variants had risen by close to Rs 4 lakh since launch on the back of increasing “commodity prices”. However, the company resorted to “value engineering”, which, along with a rationalisation of semiconductor prices – that normalised after a prolonged chip shortage – enabled Mahindra to temporarily slash prices of the AX7 and AX7 K trims by up to Rs 2.20 lakh as part of a four-month-long offer.
“Our costs have come down for two reasons. One, we have done value engineering. We spent effort in removing extra costs which may not be adding value to the customer. The premiums on chips at one point of time have gone away; there’s no chip shortage now and we don’t have to pay any extra market price for those, which has brought material costs down”, Jejurikar explained.
Also Read: Mahindra Thar Roxx Interior Spied Ahead Of August 15 Launch
Previously, the AX7 and AX7 L variants ranged from Rs 21.39 lakh to Rs 26.99 lakh, but since the revision, they range from Rs 19.49 lakh to Rs 24.99 lakh (all prices, ex-showroom). Monthly production of the XUV700 has been ramped up to 10,000 units – up from the 3,500 units at launch – and Jejurikar said the company expects the price cut to have minimal impact on financials, as Mahindra anticipates higher sales volumes and enhanced operating leverage.
Mahindra is gearing up for the launch of the highly anticipated 5-door Thar Roxx on August 15, and Jejurikar confirmed the company has configured the existing production line – which currently rolls out the 3-door Thar – to produce as many as 4,000 units of the Thar Roxx.
