Price slashed on cheap RAV4 alternative

Mahindra has temporarily slashed the price of its RAV4-rivalling XUV700 as the brand looks to clear existing stock of the seven-seat SUV.

A temporary $4000 'plate clearance' deal brings the price down from an already sharp $39,990, drive-away, to $35,990 DA for the entry-level AX7, while the top-spec AX7L’s price moves from $42,990 to $38,990.

This temporary cut makes the mid-sizer more affordable than not only its mainstream rivals like the Nissan X-Trail and Mitsubishi Outlander, but also the Chery Tiggo 8 which is priced from $41,990, drive-away.

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The XUV700 is powered by a 149kW/380Nm 2.0-litre turbo-petrol engine paired with a six-speed automatic transmission.

Inside, standard kit (even on the base car) continues to include dual 10.25-inch screens for the digital dash and instrument cluster, LED headlights, synthetic leather interior trim with power adjust for the driver, dual-zone climate control, 18-inch alloy wheels and a panoramic sunroof.

Meanwhile, the top-spec car adds wireless phone charging, a 360-degree parking camera, 12-speaker audio, ventilated front seats, auto high beams, telescopic steering adjust and memory mirror settings among other minor upgrades like a light for the vanity mirror.

The majority of safety equipment is standard, including auto emergency braking and adaptive cruise, but only the AX7L scores a blind spot monitor camera, a driver's knee airbag, as well as stop-and-go functionality for the adaptive cruise system.

The XUV700 is also offered with a seven-year/150,000km warranty with a matching seven years of roadside assistance.

While the XUV700 is in a heated part of the market with many new Chinese rivals closing in, it has managed to stay on the front foot by offering fairly consistent deals on its relatively small range of vehicles.

Recently the brand has launched its 3X0 small SUV as part of a renewed, now years-long push into the Australian market as a low-cost alternative, while a new-generation dual-cab ute aimed more squarely at the mainstream market is also on the horizon.

Beyond this offering, the brand has also revealed several concepts which will ride on a new 'NU_IQ' platform capable of supporting combustion and electrified powertrains.

The platform has global aspirations, while the concepts seem to preview new-generation versions of cars currently offered in the Indian giant’s range.

Stay tuned for more on Mahindra and its China-challenging plans over the course of 2026.