The 2023 Mahindra XUV700 is officially Australia's most affordable seven-seat SUV, undercutting Nissan, Mitsubishi, and LDV

Mahindra has revealed pricing for the XUV700, a seven-seat mid-size SUV that has just undercut the LDV D90, Nissan X-Trail, and Mitsubishi Outlander to become Australia's most affordable new seven-seater.

The XUV700, along with the larger Scorpio, promise to usher in a new era for the Indian giant in Australia, one where it stands a better chance of being a household name, with low pricing and plenty of features to compete with storied rivals.

Arriving in two grades, the AX7 and AX7L, the XUV700 starts from just $36,990 drive-away, with the AX7L carrying a $3000 premium at $39,990. Mahindra says this national drive-away price will stick around until at least August 31.

Both are powered by a 2.0-litre turbocharged petrol engine, producing 149kW/380Nm driving the front wheels via a six-speed Aisin-sourced torque converter automatic transmission.

The Base AX7 scores dual 10.25-inch screens for the instrument cluster and multimedia system, wired Apple CarPlay and Android Auto connectivity, 18-inch alloy wheels, LED headlights with DRLs, a panoramic sunroof, synthetic leather interior trim with six-way power adjust for the driver, dual-zone climate control, push-start ignition, a six-speaker stereo and most of the available safety equipment.

Meanwhile the AX7L justifies its price premium by adding the missing safety equipment; a blind view camera, a 360-degree surround camera system, a more advanced version of the adaptive cruise system, as well as a seventh airbag for the driver's knee.

Other additions include telescopic adjust for the steering, retracting doorhandles, an electronic park brake, illuminated vanity mirrors, a premium 12-speaker audio system and a wireless phone charger.

There are no options on either variant, with all five colour choices coming free of charge. The white interior colour is currently the only option, although Mahindra's local executives said the brand was evaluating alternatives as a black colour was frequently requested.

Mahindra backs the XUV700 with a seven-year warranty, although it is limited in distance to 150,000km. It also scores a matching seven years of roadside assist.

The XUV700 has not yet been evaluated by ANCAP, but the brand is seeking to do so in the future.

The nearest competitors to the XUV700 with seven seats include the LDV D90 from $38,990, the Nissan X-Trail ST from $39,790, the Mitsubishi Outlander LS from $40,740, and the Honda CR-V VTi 7 from $40,900.

The brand is hoping to replicate the success of Chinese rivals, MG and Haval, with their progress in providing a lower cost and more value-focused alternative to the now more expensive mainstream automakers from Japan and Korea.

Mahindra says further variants are under consideration for the future, including lower-spec five-seat versions, or even a diesel all-wheel drive version.