Mahindra has been growing leaps and bounds in international markets with its products like the XUV700 and Scorpio N.
The made-in-India Mahindra XUV700 has been officially launched in Australia. The 7-seater SUV is offered in two trims – AX7 and AX7L. Note that these are the two top trims that are also offered in India in addition to a slew of low and mid-level variants. However, the talking point is its price tag. These two models retail for Rs 26.29 lakh and Rs 28.58 lakh, on-road in New Delhi. For the Australian market, the SUV is on sale at a ‘drive home’ price of $36,990 (Rs 20.74 lakh) and $39,990 (Rs 22.43 lakh) for the AX7 AT and AX7L AT, respectively. This undercuts the Indian model by a whopping Rs 6 lakh. But what is the reason for that?
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Mahindra XUV700 Launched in Australia
The prices mentioned for the Australian market are ‘drive home’ prices. The on-road price of the SUV in India includes comprehensive insurance. Still, that amounts for only about Rs 1.5 lakh. Even if you take this into account, the price difference is definitely too big to ignore. A major reason for the lower price tag are the low taxation. In India, the ex-factory price of a vehicle is usually less than 60% of the ex-showroom price. The rest of the amount comprises various taxes. Meanwhile. if you import a vehicle as a CBU, there’s a duty of over 100%, thereby making imported vehicles exorbitantly expensive. In Australia, though, the import duty is a meagre 5%. Moreover, the tax structure is such that the selling price of the SUV comes out to be lesser than what you would happy over here. Also, one must note that these prices are introductory and valid until August 31, 2023. As of now, the XUV700 undercuts its chief rivals like the Honda CR-V ($40,900), Mitsubishi Outlander ($0,740) and Nissan X-TRAIL ($39,790).
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Australia-spec XUV700
For the Australian market, the XUV700 comes powered by a sole 2.0-litre turbo petrol engine that generates 149.2 kW (200 PS) and 380 Nm of peak power and torque. This engine is mated to a 6-speed automatic transmission powering all four wheels. The combined fuel consumption is rated at 8.3 l / 100 km. It has a turning radius of 11.5 m, ground clearance of 196 mm and a fuel tank of 60 litres. There is Mahindra Australia’s 7-year / 150,000 km factory warranty which makes this deal all the more sweet.
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What We Think
Mahindra is growing at an impressive pace not just in India, but in many international markets too. These primarily include South Africa and Australia. The local media in these countries have acknowledged the fact that the Indian auto giant has come a long way from making industrial, agricultural and heavy machinery equipment. In fact, its SUVs carry that legacy of being indestructible and tough. With a product like the XUV700, Mahindra demonstrates what the future of the brand looks like where it focuses not only on making rugged and capable AWD SUVs but also offers the latest tech and convenience. All this at extremely competitive prices giving its rivals a run for their money.
