Mahindra expects the newly launched XUV 7XO to drive up to 30 percent incremental demand without any immediate expansion in manufacturing capacity. According to R Velusamy, president of automotive business, Mahindra currently has installed capacity of around 10,000 units a month for the XUV 7XO and related platforms at its Chakan plant which should be sufficient to absorb the expected demand uptick. “With the transformation across lower, mid and top variants, we believe demand can go up by as much as 30%, and we are well placed to manage that within existing capacity.”
Mahindra XUV 7X0 pricing
Mahindra XUV 7X0 prices start at Rs 13.66 lakh for the first 40,000 units. The XUV 7XO replaces the outgoing XUV700, which clocked around 7,000 units a month last year, highlighting the strong base Mahindra is building on. The company is betting on higher feature content and a richer variant mix to drive volumes as well as realisations. According to Velusamy, nearly 80% of XUV700 sales have historically come from top-end AX7 and AX7L trims, indicating a clear customer preference for feature rich premium variants.
Mahindra bets on a broader shift in the mid-size SUV market
According to the brand, the strategy reflects a broader shift in the mid-size SUV market, where buyers are increasingly prioritising technology and features over entry pricing. The company believes this premiumisation trend allows it to scale volumes while maintaining margins, aided by economies of scale across its SUV portfolio.
Demand outlook for XUV 7XO
The demand outlook for the XUV 7XO also comes on the back of Mahindra’s strong overall performance. The automaker closed calendar year 2025 with over 6 lakh units in retail sales, registering 20% growth year-on-year, and has emerged as India’s largest SUV maker by revenue.