Mahindra XUV700 has made its place in India’s premium SUV market. It boasts a progressive design, strong engines, and segment-leading features, serving families as well as driving enthusiasts. Yet, one of the most important considerations for any automobile purchaser, particularly in the case of mid-size SUVs, is the running cost. After the ex-showroom price, costs such as fuel, maintenance, insurance, and overall maintenance decide the actual cost of ownership.
In this guide, we understand the Mahindra XUV700’s service cost for five-year for both the petrol and diesel models, manual and automatic.
Mahindra XUV700: Fuel Type and Mileage Overview
The XUV700 is offered in several powertrain units:
- Petrol: 2.0L Turbo GDi
- Diesel: 2.2L mHawk (in two states of tune)
Both petrol and diesel variants come with 6-speed manual and 6-speed automatic transmissions. Understanding the fuel efficiency of each helps gauge fuel expenditure over time.
ARAI Mileage Comparison:
| Fuel Type | Transmission | ARAI Mileage |
| Petrol | Manual | 15 kmpl |
| Petrol | Automatic | 13 kmpl |
| Diesel | Manual | 17 kmpl |
| Diesel | Automatic | 16.57 kmpl |
Real-World Mileage (Based on User Feedback):
| Fuel Type | Transmission | City (km/l) | Highway (km/l) |
| Petrol | Manual | 9–10 | 13–14 |
| Petrol | Automatic | 8–9 | 12–13 |
| Diesel | Manual | 12–13 | 16–17 |
| Diesel | Automatic | 11–12 | 15–16 |
For our calculations, we’ll use real-world mixed average mileage:
- Petrol Manual: 11.5 km/l
- Petrol Automatic: 10.5 km/l
- Diesel Manual: 14 km/l
- Diesel Automatic: 13.5 km/l
XUV700 Fuel Cost per Km (Based on 5-Year Usage)
Assumptions for Fuel Cost Calculation:
- Fuel Prices: Petrol @ ₹100/litre, Diesel @ ₹90/litre
- Annual Running: 12,000 km
Annual & 5-Year Fuel Cost Estimate:
| Variant | Mileage (km/l) | Fuel Cost/km | Annual Fuel Cost | 5-Year Fuel Cost |
| Petrol Manual | 11.5 | ₹8.70 | ₹1,04,400 | ₹5,22,000 |
| Petrol Automatic | 10.5 | ₹9.52 | ₹1,14,240 | ₹5,71,200 |
| Diesel Manual | 14.0 | ₹6.43 | ₹77,160 | ₹3,85,800 |
| Diesel Automatic | 13.5 | ₹6.67 | ₹80,040 | ₹4,00,200 |
You can see how fuel cost alone makes a big difference over time, more so between petrol and diesel variants. Diesel versions are cost-effective for high-mileage users.
XUV700 Service and Maintenance Costs Over 5 Years
Regular Service Intervals and Inclusions:
Mahindra suggests servicing the XUV700 every 10,000 km or annually, whichever is earlier. The following are included in every service:
- Engine oil and filter replacement
- Air and AC filter cleaning/replacement
- Brake clean
- General check
- Coolant, transmission fluid (as scheduled)
Year-Wise Service Cost:
Diesel Variant:
| Year | Manual (₹) | Automatic (₹) |
| 1 | 4,439 | 4,439 |
| 2 | 885 | 885 |
| 3 | 10,511 | 10,511 |
| 4 | 7,933 | 7,842 |
| 5 | 7,347 | 7,347 |
| Total | 31,115 | 31,024 |
Petrol Variant:
| Year | Manual (₹) | Automatic (₹) |
| 1 | 4,439 | 4,439 |
| 2 | 1,310 | 1,310 |
| 3 | 7,219 | 7,219 |
| 4 | 7,420 | 7,328 |
| 5 | 7,219 | 7,219 |
| Total | 27,607 | 27,515 |
Petrol variants have marginally lower servicing costs, but the diesel’s reduced fuel cost will typically outweigh this over a long period of time.
Insurance and Other Recurring Expenses
Insurance (Comprehensive + Add-ons such as zero depreciation):
- Year 1: ₹35,000-₹38,000
- Year 2–5: ₹25,000-₹28,000/year
- Total (5 years): ₹1,50,000 (approx.)
Other Recurring Expenditures:
| Expense Type | Annual Cost | 5-Year Total |
| PUC Certificate | ₹200 | ₹1,000 |
| Wheel Alignment & Balancing | ₹1,000 | ₹5,000 |
| General Upkeep (Wipers, Wash, Fluids) | ₹2,000 | ₹10,000 |
| Total Miscellaneous | — | ₹16,000 |
Total Ownership Cost of Mahindra XUV700 (5-Year Estimate)
| Variant | Fuel (₹) | Service (₹) | Insurance (₹) | Misc (₹) | Total Cost | Avg/Year |
| Petrol Manual | 5,22,000 | 27,607 | 1,50,000 | 16,000 | ₹7,15,607 | ₹1,43,121 |
| Petrol Automatic | 5,71,200 | 27,515 | 1,50,000 | 16,000 | ₹7,64,715 | ₹1,52,943 |
| Diesel Manual | 3,85,800 | 31,115 | 1,50,000 | 16,000 | ₹5,82,915 | ₹1,16,583 |
| Diesel Automatic | 4,00,200 | 31,024 | 1,50,000 | 16,000 | ₹5,97,224 | ₹1,19,445 |
How to Reduce Your XUV700’s Running Cost
Controlling your SUV’s expenses over time isn’t just about fuel efficiency. Smart driving habits, timely service, and strategic choices can reduce your overall cost significantly—even with a premium model like the XUV700. Here’s how:
- Drive Efficiently: Gentle acceleration and braking help improve mileage and reduce engine wear.
- Maintain Proper Tire Pressure: Under-inflated tires increase fuel consumption and reduce handling performance.
- Adhere to the Maintenance Schedule: Adhering to Mahindra’s service interval recommendations guarantees maximum vehicle health. It also avoids additional repair expenses. Keeping yourself informed about your Mahindra XUV700 maintenance cost enables you to budget in advance.
- Choose Prepaid Maintenance Plans: Mahindra’s prepaid maintenance plans can help save money by paying for major maintenance at a discounted price.
- Opt for Diesel for Highway Drivers: If your yearly driving is over 12,000–15,000 km, diesel models provide improved long-term savings even though they incur slightly greater initial service expenses.
- Keep Idle Minutes Down: Contemporary engines consume higher amounts of fuel while idling than while driving steadily. Don’t keep the engine running at extended signals.
By doing so, you not only reduce the running expense of your XUV700 but also bring better performance and a longer life to your SUV.
Summary
For more than five years, the running cost of the Mahindra XUV700 varies from around ₹5.8 lakh (Diesel Manual) to ₹7.6 lakh (Petrol Automatic) based on the variant. Diesel variants have better fuel efficiency as well as cheaper fuel, but petrol variants have lower maintenance expenses. The most value-for-money option is the diesel manual for customers who prioritize cost savings.
When it comes to long-term ownership planning, it is easier to decide by analyzing running costs. Although initial cost and specifications are important considerations, what you pay annually is just as important.
If you’re in the market for a tech-loaded SUV that’s fun to drive and relatively economical to own, the XUV700 delivers on all fronts. Whether your focus is performance, economy, or long-term peace of mind, understanding the cost implications makes for a smarter investment.
FAQs About Mahindra XUV700 Running Cost
Q. What is the ARAI mileage of the Mahindra XUV700?
Ans: ARAI mileage varies from 13 km/l (Petrol AT) to 17 km/l (Diesel MT) based on the variant.
Q. What is the cost of servicing the XUV700 every year?
Ans: The average annual XUV700 service cost varies between ₹5,500–₹7,000 based on the year and variant.
Q. Which variant is the lowest running cost?
Ans: The Diesel Manual variant is the lowest total running cost for 5 years.
Q. Is the XUV700 high-maintenance compared to competitors?
Ans: Not so much. Its diesel models are the most fuel-efficient and Mahindra’s service charges are reasonable.
Q. Can I have a service package or extended warranty?
Ans: Yes, Mahindra provides prepaid service packages and extended warranties at extra cost for peace of mind.
Q. Should I purchase the diesel or petrol model if I drive mostly in the city?
Ans: For largely urban driving and lower annual miles, petrol versions can be more suitable on the basis of smoother operation and lesser initial outlay despite slightly greater fuel cost.
Q. Does fuel economy become better over time with proper maintenance?
Ans: Yes. Maintenance of the engine, filters, and tires in peak condition ensures you have the best mileage over the life of your car.
Q. Is resale value better for diesel or petrol XUV700?
Ans: Resale value may favor diesel slightly, especially in rural or high-mileage markets, but depends on region and market trends.



