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Mahindra’s Premium SUV Strategy Accelerates: Thar, XUV700 Facelifts and XEV 7e Lead 2025 Lineup

By Manbir Sandhu , 6 July 2025
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Mahindra & Mahindra is doubling down on its ambition to redefine itself as a leading manufacturer of premium utility vehicles. With a renewed focus on design, performance, and technology, the company is preparing to roll out a slate of new internal combustion engine (ICE) and battery electric vehicle (BEV) models by 2030. Notably, three major SUV launches are set for 2025: a refreshed Mahindra Thar, an updated XUV700, and a brand-new electric SUV — the XEV 7e. These launches aim to cement Mahindra’s upward shift in brand positioning and cater to a rapidly evolving, premium-focused customer base.

Strategic Push Toward Premiumization

In recent years, Mahindra has steadily transitioned from a maker of rugged utility vehicles to a brand known for high-performance, feature-rich SUVs. This shift, evident in the success of the current Thar and XUV700, is now poised to deepen with the automaker’s aggressive product roadmap. By 2030, Mahindra plans to launch 12 new models — seven powered by internal combustion engines and five fully electric vehicles.

These models will predominantly cater to the upper-end of the market, enhancing both margins and brand prestige. For 2025, three significant models are lined up that highlight this strategy: the next-generation Thar, the facelifted XUV700, and the debut of the electric XEV 7e.

1. New Mahindra Thar: Icon Refreshed

Launched in 2020, the current Mahindra Thar redefined India’s off-road segment and quickly became a cult favourite. However, a mid-cycle refresh is on the horizon, with the new Thar expected in 2025 under the internal codename W515.

Design and Features:
The updated Thar will borrow several styling elements from the larger Thar Roxx, such as a redesigned radiator grille featuring double vertical slats, LED headlamps with C-shaped daytime running lights, a revamped front bumper, and new alloy wheels.

Interior Enhancements:
Inside, the SUV is likely to feature a 10.25-inch infotainment touchscreen, a fully digital instrument cluster of the same size, a redesigned steering wheel, and for the first time — a sunroof in the hard-top variant. Despite these modernizations, no mechanical changes are anticipated, allowing the Thar to maintain its proven off-road credentials.

2. New Mahindra XUV700: Evolution Over Revolution

Introduced in 2021, the XUV700 has played a pivotal role in reshaping Mahindra’s image as a tech-forward, premium SUV manufacturer. The upcoming facelift — expected to launch within a year — will fine-tune its design and cabin appeal.

Exterior Updates:
Spy images suggest revised headlamp units with dual U-shaped LED clusters, a new six-slot radiator grille, redesigned bumpers, and new rear reflectors. An upgrade to 18-inch alloy wheels is also likely.

Interior Overhaul:
The most significant changes are expected inside the cabin. A new dashboard layout, likely inspired by the triple-screen interface from the XEV 9e, could dramatically elevate the cockpit experience. Alongside a fresh interior colour palette, these updates will aim to retain the XUV700's edge in its segment.

Mechanicals:
Powertrain configurations are expected to remain unchanged, keeping the current petrol and diesel options intact.

3. Mahindra XEV 7e: Electric Ambitions Realized

Leading the BEV offensive is the all-new XEV 7e — a fully electric three-row SUV based on the architecture of the XUV700, but borrowing design language and performance technology from the XEV 9e.

Performance and Battery Options:
The XEV 7e is likely to be offered with two rear motor options: 170 kW (228 hp) and 210 kW (282 hp), paired with either a 59 kWh or 79 kWh lithium iron phosphate (LFP) battery pack. The vehicle is expected to accelerate from 0 to 100 km/h in around 7 seconds, with a claimed range approaching 600 km.

Feature Set:
In addition to a frunk (front trunk), the XEV 7e may feature high-end offerings such as gesture-controlled power tailgate, adaptive suspension, AutoPark, a 12.3-inch passenger touchscreen, and other connected car technologies. These features indicate Mahindra's ambition to position the XEV 7e as a formidable competitor in the premium EV space.

Conclusion: A New Chapter in Mahindra’s SUV Legacy

As India’s automotive market pivots toward electrification and premiumisation, Mahindra appears well-positioned to lead the charge. With its mix of rugged DNA and modern, tech-laden updates, the company’s 2025 lineup signals both continuity and evolution. The new Thar will build on a legacy of off-road excellence; the facelifted XUV700 will maintain its leadership in connected SUV tech; and the XEV 7e will break new ground in performance-oriented electric mobility.

These models not only reflect Mahindra’s strategic product roadmap but also align with broader shifts in consumer expectations — where design, features, and sustainability are becoming as important as performance and price.

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