Mahindra & Mahindra has announced a major price cut across its ICE (internal combustion engine) SUV portfolio after the introduction of GST 2.0. The move comes as a big relief for SUV buyers in India, especially those waiting to purchase premium models like the Scorpio N, XUV700, and XUV3XO.
| Model | Current GST + Cess | New GST | Full GST Benefits (₹) |
|---|---|---|---|
| Bolero/Neo | 31% | 18% | 1,27,000 |
| XUV3XO (Petrol) | 29% | 18% | 1,40,000 |
| XUV3XO (Diesel) | 31% | 18% | 1,56,000 |
| Thar 2WD (Diesel) | 31% | 18% | 1,35,000 |
| Thar 4WD (Diesel) | 48% | 40% | 1,01,000 |
| Scorpio Classic | 48% | 40% | 1,01,000 |
| Scorpio-N | 48% | 40% | 1,45,000 |
| Thar Roxx | 48% | 40% | 1,33,000 |
| XUV700 | 48% | 40% | 1,43,000 |
Mahindra Implements GST Benefits Early
While the new GST 2.0 rates are officially applicable from 22 September 2025, Mahindra has decided to pass on the benefits earlier, starting from 6 September 2025. This step shows Mahindra’s customer-first approach, giving buyers immediate relief instead of waiting for the official government rollout date.
How Much Do Customers Save?
The price reduction varies depending on the model and variant. On some models, buyers can save more than ₹1.5 lakh.
- Entry-level SUVs see a reduction of around ₹1.01 lakh.
- Diesel variants of the XUV3XO offer the highest benefit of ₹1.56 lakh.
- Mid-segment SUVs like the Scorpio N and XUV700 also get a big price correction.
Why Did Prices Go Down?
The 56th GST Council meeting revised the tax rate on SUVs, cutting it from 48% to 40%. This was done to boost sales in the auto sector, reduce customer burden, and make SUVs more affordable for middle-class and upper-middle-class buyers.
Mahindra is not the only company passing on the benefit. Tata Motors and Toyota have also announced price cuts, proving that competition in the SUV segment is getting stronger.
Impact on Indian SUV Market
SUVs are currently the fastest-growing car segment in India, with rising demand in both rural and urban areas. By reducing prices, companies are making SUVs more accessible. For Mahindra, this step could mean:
- Higher bookings during the festive season.
- Stronger competition with Tata, Hyundai, and Toyota.
- A chance to attract customers who were earlier considering mid-range sedans or compact SUVs.
Industry experts believe this price cut may also encourage customers to upgrade to bigger SUVs, especially since the cost gap with smaller cars has reduced.
Conclusion
Mahindra’s decision to pass on full GST 2.0 benefits ahead of time is a smart move that strengthens customer trust. With savings up to ₹1.56 lakh, this is great news for SUV lovers in India. Combined with festive season demand, Mahindra is likely to see a strong surge in bookings in the coming weeks. For buyers, this is one of the best times to buy a Mahindra SUV.
FAQs
What is GST 2.0?
GST 2.0 is the revised tax structure where the GST rate on SUVs was reduced from 48% to 40%, making them more affordable.
Which Mahindra SUV got the highest price cut?
The XUV3XO diesel variants received the biggest benefit of up to ₹1.56 lakh.
From when will Mahindra’s new prices be effective?
Mahindra’s revised prices are effective from 6 September 2025, even before the government’s official rollout date of 22 September.
Are other car companies also reducing prices?
Yes, companies like Tata Motors and Toyota have also announced similar price cuts after GST 2.0.
Should I buy a Mahindra SUV now?
Yes, with the price drop and upcoming festive season offers, this is an excellent time to buy. Customers will get maximum savings compared to earlier prices.