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Mahindra Slashes SUV Prices by Up to ₹1.56 Lakh, Mahindra Thar to Scorpio-N: How much can you save?

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.

The most significant price reduction has been applied to the XUV3XO Diesel, which will now be more affordable by up to ₹1.56 lakh.
Additionally price benefits for other key models, including the Scorpio-N, XUV700, Thar, and Bolero Neo. The reductions for these models will range between ₹1 lakh and ₹1.45 lakh. Specifically, the Thar Roxx, Thar 2WD, and Thar 4WD variants will see benefits between ₹1.01 lakh and ₹1.35 lakh, and the Scorpio Classic will become cheaper by approximately ₹1.01 lakh

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.

The 56th GST Council meeting marks a significant milestone in India’s tax reform efforts. The decision to simplify the GST structure is a proactive and bold move towards achieving a “Good and Simple Tax,” reflecting the government’s confidence in industry’s role in fostering economic growth. The automotive sector, being a vital contributor to our economy and a major employer, stands to benefit significantly from this reform.
This rationalization provides a much-needed impetus to an industry that has historically borne a substantial indirect tax burden. The reduction of the GST rate for most mainstream vehicles and auto components from the previous 28%-31% to 18% is transformative. This will directly enhance the affordability of vehicles for the general public, making small cars, two-wheelers, and three-wheelers considerably more accessible. Specifically, for two-wheelers and small cars, this could lead to a price reduction of 10% or more, directly increasing consumers’ disposable income. This initiative underscores the government’s dedication to fulfilling the aspirations of every citizen and is designed to stimulate private consumption, thereby initiating a robust domestic growth cycle.

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