Following Tata Motors and Renault, Mahindra & Mahindra has announced a reduction in the prices of its SUVs by up to ₹1.56 lakh, effective September 6, 2025, to pass on the benefits of the revised GST rates to customers. This decision arrives after the 56th GST Council meeting, which was chaired by Finance Minister Nirmala Sitharaman and introduced a simplified two-slab structure for automobiles.

The revised prices will be transparently updated across dealerships and digital platforms. Mahindra has become the first passenger vehicle brand to announce that it will pass on the full GST benefits to customers across its entire ICE SUV portfolio starting today.

The price cuts vary across Mahindra's popular SUV lineup: * Bolero/Neo: Reduced by ₹1.27 lakh * XUV3XO (Petrol): Reduced by ₹1.40 lakh * XUV3XO (Diesel): Reduced by ₹1.56 lakh * Thar 2WD (Diesel): Reduced by ₹1.35 lakh * Thar 4WD (Diesel): Reduced by ₹1.01 lakh * Scorpio Classic: Reduced by ₹1.01 lakh * Scorpio N: Reduced by ₹1.45 lakh * Thar Roxx: Reduced by ₹1.33 lakh * XUV700: Reduced by ₹1.43 lakh

The reductions follow the drop in GST on smaller SUVs from 29-31% to 18%, and on larger models like Scorpio N, Thar 4WD, and XUV700 from 48% to 40%.

The GST Council's decision to rationalize taxes is being hailed as a landmark reform. By lowering the tax burden, the new regime aims to make vehicles more affordable, stimulate demand, and simplify compliance.

Earlier, petrol and diesel cars with bigger engine capacity paid an effective tax of nearly 50%, comprising 28% GST plus a 22% compensation cess. Under the new system, this has also been revised to a flat 40% GST. Key changes include smaller vehicles such as hatchbacks, compact sedans, and compact SUVs falling into the 18% slab, while mid-size, large, and luxury models attract a 40% rate. For electric vehicles, GST remains unchanged at 5%, while hydrogen fuel cell vehicles (FCEVs) see a reduction from 12% to 5%.

Mahindra's move to immediately implement the reduced prices is expected to boost demand ahead of the festive season. With savings crossing the ₹1 lakh mark in several models, first-time SUV buyers and existing customers looking to upgrade now have a compelling reason to choose a Mahindra. The company emphasized that the extent of benefit will depend on the model and variant selected, but the intent is clear: to pass on the full tax reduction to end consumers.

Renault India also announced that it would fully pass on the benefits of GST 2.0 across its entire product portfolio. The revised pricing, with reductions of up to ₹96,395, will be effective on all deliveries made on or after September 22, 2025, coinciding with the first day of Navratri. However, customers can start booking their Renault car at the new prices immediately across all dealerships nationwide. Maruti Suzuki is also planning reductions on smaller vehicles.