Mahindra has confirmed via a social media post that the current Mahindra XUV500 will be discontinued ‘temporarily’ once the Mahindra XUV700 launches around July 2021. This lays to rest speculation over the future of the XUV500, with there now a strong suggestion that the nameplate could return as the two-row iteration of the three-row Mahindra XUV700. This comes after Mahindra announced that the upcoming W601 SUV, so far assumed to be the next-generation Mahindra XUV500, would, in fact, be an all-new flagship model.
Mahindra seems to be following the latest trend in the SUV segment of three-row derivatives of C-segment SUVs, only reversed with the new nameplate. This new sub-segment already consists of cars like the MG Hector Plus, the Tata Safari, and the upcoming Hyundai Alcazar.
The new XUV700 will be based on a new monocoque W601 architecture, which was also to be the base for a Ford SUV too until the deal fell through. The SUV is expected to get updated versions of the engines that recently debuted on the Mahindra Thar. This means the 2.0-liter Stallion turbo-petrol with approximately 190 hp and around 350 Nm, and the 2.2-liter mHawk diesel with close to 190 hp and over 400 Nm torque. Both engines should pair with a six-speed manual and a six-speed torque-converter automatic.
Mahindra has also confirmed the addition of an optional AWD system with the XUV700. The next XUV500 could lose the AWD for a more competitive price while coming with differentiated exterior and interior styling. We also expect the engine options to be carried over from the XUV700, even if in slightly detuned form. If launched, the new Mahindra XUV500 will compete with the Tata Harrier, MG Hector, Kia Seltos, and Hyundai Creta, with prices slightly higher than those of the current version.