Mahindra's new flagship SUV revealed

A new budget SUV has just been revealed. 

Indian brand Mahindra has unveiled its updated flagship seven-seater, called the XUV 7XO, which will replace the current XUV 700.

It will start from 1.366 million rupees (around $22,500) in its home market of India. 

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It will be available in two engine choices, which are 2.0-litre turbo-petrol and 2.2-litre turbo-diesel variants, paired with either six-speed auto or manual transmissions. 

The petrol motor produces 149kW and 380Nm, while the diesel has 137kW and 420Nm, which rises to 450Nm with an automatic transmission.

The petrol engine variant can go from 0-60km/h in under five seconds, according to Mahindra. 

The XUV 7XO is available with an all-wheel drive option.

It is unclear at this stage whether 7XO will come to Australia, but it will likely replace the current 700 in the brand's local line-up.

The XUV 700 starts from $36,990, drive-away and is only available with a 2.0-litre petrol engine, producing 149kW and 380Nm. 

The 7XO would be an alternative to the Chery Tiggo 8 Pro, which managed more than 3500 sales last year. 

Mahindra Australia has been contacted for comment as to whether we will see the updated budget seven-seater down under. 

The 7XO represents a big upgrade from the 700.

It comes with 19-inch alloy wheels, a new sleek headlight and grille design and electric door handles.

The car has undergone a serious revamp in the cabin, with a variety of new technology on offer. 

Most notably, there is a display spanning the full width of the dashboard, comprising of three high definition screens. 

Elsewhere, it has a 16-speaker Harmon Kardon audio system, featuring Dolby Atmos 3D surround sound technology to further provide high quality audio. 

Wireless charging comes as standard in both the front and rear of the car, while a sunroof and retractable rear shades add to the comfort for passengers in the back. 

The seats in the 7XO have also been significantly upgraded, with a new high-density foam and plush pads, along with front and rear ventilation.