The compact SUV battle in India has heated up in 2025, and Mahindra is back in the spotlight with a surprise price cut on one of its most popular trims. The XUV 3XO AX5 variant has received a direct ₹20,000 price drop, making it more accessible to buyers who want premium features without stretching their budget. The move comes right after the introduction of new REVX models, and it is clearly aimed at keeping the AX5 competitive against both in-house rivals and segment challengers.
Why Mahindra Dropped the Price in 2025
The AX5 variant has always been one of the most popular choices in the XUV 3XO lineup. However, with the launch of new REVX A variants priced slightly higher, Mahindra risked losing some customers who felt the AX5 was too close in pricing to the newer models. To keep demand strong and maintain balance in its lineup, Mahindra has decided to slash the AX5 price by ₹20,000, creating a wider gap and ensuring buyers see it as a better value-for-money option.
What Makes the AX5 Variant Special
The AX5 trim sits in the sweet spot of the XUV 3XO range. It blends affordability with a rich feature set, making it a smart choice for families and urban buyers. Some standout highlights include:
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Panoramic Sunroof: A rare feature in this price bracket.
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Advanced Infotainment: A large touchscreen with Android Auto and Apple CarPlay.
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Premium Comfort: Dual-tone interiors, automatic climate control, and rear AC vents.
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Safety Features: 6 airbags, ESP, and hill-hold assist as standard.
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Performance: Turbo-petrol engine offering peppy performance for city and highway drives.
With these features, the AX5 feels like a premium SUV without entering the expensive price band of higher trims.
New Pricing Structure After ₹20,000 Cut
After the official price cut, the XUV 3XO AX5 Petrol is now priced at around ₹11.49 lakh (ex-showroom). This makes it more attractive compared to rivals such as the Hyundai Venue SX, Kia Sonet HTX, and Tata Nexon Fearless variants, which are priced slightly higher.
By undercutting competition, Mahindra has positioned the AX5 as one of the most value-packed compact SUVs in the country.
Impact of REVX Model Launches
The launch of REVX A variants introduced higher-priced options with advanced features such as ADAS, 360-degree cameras, and ventilated seats. While these models appeal to buyers seeking top-class technology, many customers still prefer a balanced mid-tier trim. The ₹20,000 cut ensures that the AX5 remains the go-to choice for those who want modern features at an affordable price without going for the top-end models.
How the AX5 Stacks Up Against Competitors
The compact SUV market is one of the busiest in India, with strong contenders:
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Hyundai Venue: Known for reliability but slightly more expensive in similar trims.
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Kia Sonet: Offers premium interiors but at a higher price.
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Tata Nexon: Great safety ratings but fewer premium features at the same cost.
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Maruti Brezza: Fuel-efficient but lacks the premium tech of AX5.
With the new price cut, the XUV 3XO AX5 edges ahead as a complete package offering style, features, and performance without overshooting the budget.
Why This Price Drop Matters for Buyers
In a market where prices are rising steadily, any cut is welcome news. For buyers, this ₹20,000 reduction translates to:
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Lower On-Road Price: Making EMIs more affordable.
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Better Value: More features for a lower cost.
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Segment Edge: A chance to own a premium SUV at a price usually reserved for lower trims of competitors.
This move also builds confidence among customers that Mahindra is committed to keeping its SUVs competitive.
Festive Season Boost
The timing of the price cut in September 2025 couldn’t be better. With festive demand kicking in, Mahindra is positioning the AX5 as an irresistible option for families upgrading to a modern SUV. Coupled with attractive finance schemes and exchange bonuses, buyers can save even more.
Things to Check Before Buying the AX5
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Variant Comparison: Compare AX5 with REVX models before booking.
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Dealer Benefits: Some showrooms may add accessories packages or extra discounts.
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Finance Options: Look for low-interest EMI offers available this month.
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Delivery Timeline: High demand may lead to waiting periods in select cities.
Conclusion
The ₹20,000 price drop on the Mahindra XUV 3XO AX5 has made it one of the most attractive compact SUVs in India right now. With premium features like a panoramic sunroof, strong safety package, and modern tech, the AX5 was already popular. Now, with its reduced price, it stands tall as the best value-for-money SUV in its category. For anyone planning to buy a stylish and feature-loaded SUV this September, the AX5 should be at the top of the list.
FAQs
What is the new price of the Mahindra XUV 3XO AX5 after the cut?
The AX5 Petrol now starts at around ₹11.49 lakh (ex-showroom) after the ₹20,000 reduction.
Why did Mahindra reduce the AX5 price?
The cut ensures the AX5 remains competitive after the launch of higher-priced REVX A models.
Is the AX5 better than the REVX variants?
The REVX trims offer more features, but the AX5 is a smarter choice for buyers seeking value without overspending.
Which rivals compete with the XUV 3XO AX5?
Key competitors include Hyundai Venue, Kia Sonet, Tata Nexon, and Maruti Brezza.
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