Mahindra & Mahindra (M&M) has announced a price cut across its SUV portfolio, passing on the benefits of the Goods and Services Tax (GST) 2.0 rate rationalization to customers. The revised prices are effective from September 6, 2025, well ahead of the September 22 deadline when the new tax slabs will be enforced. This move makes Mahindra one of the first automotive manufacturers to proactively implement the GST reduction for consumers.
The GST Council recently reduced tax slabs, moving small cars with petrol, LPG, and CNG engines (up to 1,200 cc) and diesel cars (up to 1,500 cc) to the 18% slab from the previous 28%. Motorcycles up to 350 cc also benefit from the 18% slab, while electric vehicles (EVs) remain at 5%. Larger cars, big hybrids, motorcycles above 350 cc, and racing cars will attract a 40% levy. Previously, internal combustion engine (ICE) vehicles were taxed at 28% with an additional cess ranging from 1 to 22 percent. The new rules eliminate the cess component for most vehicle categories.
Mahindra's price reductions range up to ₹1.56 lakh. The Bolero/Neo range is now cheaper by up to ₹1.27 lakh, while the XUV3XO variants have seen reductions of up to ₹1.40 lakh for petrol and ₹1.56 lakh for diesel models. The Thar 2WD (diesel) has been cut by ₹1.35 lakh, and both the Thar 4WD (diesel) and Scorpio Classic by ₹1.01 lakh each. Prices of the Scorpio-N have dropped by ₹1.45 lakh, the Thar Roxx by ₹1.33 lakh, and the XUV700 by ₹1.43 lakh.
The company has stated that the benefits will be passed on transparently through dealerships and digital platforms. This move is expected to boost demand during the festive season, as potential buyers can now avail of significant savings on their favorite Mahindra SUVs.
Several other automakers are also following suit. Tata Motors has announced price cuts ranging from ₹65,000 to ₹1.45 lakh across its passenger vehicle line-up, effective from September 22. Renault India has also announced reductions of up to ₹96,395 across its product line, effective for all deliveries from September 22.
The GST Council's decision to rationalize taxes is seen as a landmark reform. By lowering the tax burden, the new regime aims to make vehicles more affordable, stimulate demand, and simplify compliance. For Mahindra, which has consistently maintained a strong presence in the SUV market, this reform provides an added advantage in retaining its customer base while attracting new buyers.
The proactive implementation of the GST rate cuts by Mahindra is a strategic move that is expected to provide a competitive edge and boost sales in the coming months. This customer-centric approach reinforces Mahindra's commitment to delivering value and affordability in the Indian automotive market.
