Mahindra Cuts SUV Prices After GST Reform: Model-Wise Savings Announced
Broad Price Reductions Across the Lineup
Mahindra & Mahindra has become one of the first automakers to implement the benefits of the new GST 2.0 reforms, reducing prices across its entire ICE SUV range from September 6, 2025. The cuts range up to Rs 1.56 lakh, making several of its popular models more affordable ahead of the festive buying season.
The XUV3XO diesel variant records the steepest drop at Rs 1.56 lakh, while the petrol version is cheaper by Rs 1.40 lakh. Mahindra’s long-running Bolero and Bolero Neo both receive price reductions of Rs 1.27 lakh.
The Thar range has differentiated cuts based on drivetrain. The Thar 2WD diesel is now cheaper by Rs 1.35 lakh, while the more capable 4WD diesel gets a Rs 1.01 lakh reduction. The recently introduced Thar Roxx, aimed at midsize SUV buyers, also benefits with a Rs 1.33 lakh cut.
In the larger SUV space, the XUV700 gets a price drop of Rs 1.43 lakh, while the Scorpio-N sees one of the highest reductions at Rs 1.45 lakh. Together, these adjustments strengthen Mahindra’s position across multiple SUV categories.
How the Tax Change Works
The reductions follow the GST Council’s decision on September 3, 2025, to simplify the tax system for vehicles. Smaller SUVs such as the XUV3XO, which fall under the sub-4-metre category with the right engine capacities, now attract a flat 18 percent GST instead of the earlier 29 to 31 percent with cess. This cut of 11 to 13 percentage points directly lowers customer prices.
Larger SUVs such as the Scorpio-N, Thar Roxx, and XUV700 were previously taxed at about 48 percent, combining GST and compensation cess. Under the new system, they now fall under a flat 40 percent GST bracket. Even though the rate appears high, the removal of cess means an effective drop of around 8 percentage points.
The simplified structure removes much of the complexity of the old tax regime, making pricing more transparent for both automakers and consumers.
Timing Ahead of Festive Season
The announcement and implementation from September 6 give Mahindra a head start on rivals as the festive season begins. Traditionally, car sales rise sharply around Navaratri and Diwali. By introducing the reduced prices earlier than others, Mahindra hopes to capture early demand and boost bookings.
Analysts believe the brand could benefit the most from GST 2.0 because of its SUV-heavy lineup. Nearly two-thirds of Mahindra’s SUVs now fall under the reduced 40 percent slab compared to the previous 50 percent, improving price competitiveness against brands like Maruti Suzuki and Hyundai.
For buyers, this means lower upfront costs and potentially shorter waiting periods if they book early. Dealers have already begun updating price lists and expect strong response in the coming weeks.
What It Means for Buyers and the Market
The savings make Mahindra’s SUV range accessible to a wider group of customers. The XUV3XO, positioned as an entry SUV, now looks more attractive for first-time buyers with reductions of over Rs 1.50 lakh on the diesel version. The Thar, which has a loyal enthusiast following, becomes easier to afford for younger buyers.
The Bolero and Bolero Neo, popular in smaller towns and semi-urban markets, also benefit from reductions that align with customer budgets in those areas. Meanwhile, premium buyers considering the XUV700 or Scorpio-N will find them more competitive against other three-row SUVs.
Mahindra has also committed to clear and transparent communication. Prices across dealerships and digital platforms are being updated model by model, ensuring buyers know exactly how much they stand to save.