Multiple automakers are implementing the new GST 2.0 tax structure—Mahindra has taken the lead by immediately lowering prices on its ICE SUV lineup.
The recent announcement by Mahindra & Mahindra regarding significant price reductions on their ICE SUV lineup, effective September 6, 2025. This proactive move by Mahindra comes ahead of the festive season and is a direct result of the newly implemented GST 2.0 tax structure
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Model-wise Price Reductions:
Mahindra & Mahindra has passed on the full benefits of the revised GST structure to its customers, with price reductions ranging from ₹1.01 lakh to ₹1.56 lakh across its ICE SUVs. Here’s a breakdown:
Under GST 2.0, smaller vehicles (sub-4m, engine ≤ 1200cc petrol / 1500cc diesel) now face a flat 18% GST without compensation cess, a notable decrease from the previous ~28% + cess. Similarly, larger SUVs, which were previously taxed at 48–50% (GST + cess), now attract a flat 40% GST with the cess removed. These changes have enabled Mahindra to pass on substantial savings to customers, with price reductions ranging from ₹1.01 lakh to ₹1.56 lakh across various models.
This immediate implementation positions Mahindra advantageously for the upcoming Navaratri and Diwali sales period. We anticipate other major automotive players like Toyota, Tata, and Renault will follow suit with similar price adjustments to stimulate demand. This GST simplification is expected to have a positive economic impact, potentially reducing inflation, boosting overall demand, and streamlining compliance across various sectors.
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