Mahindra announces SUV price cuts up to ₹1.56 lakh after GST reduction | Complete details

Mahindra & Mahindra rolls out price benefits of up to ₹1.56 lakh across its SUV lineup starting September 6, following the GST revision by the government.

Mahindra & Mahindra Ltd. (M&M), one of India’s most prominent automobile manufacturers, has announced that it will extend the complete benefit of the Goods and Services Tax (GST) revision to its customers beginning September 6. The move translates into a price drop of up to ₹1.6 lakh across several of its SUVs, aligning with the recent tax relief announced by the central government earlier this week.

Unlike many other carmakers, Mahindra’s entire production line focuses exclusively on the SUV category. Under the revised GST framework, diesel vehicles with engines not exceeding 1500 cc and overall length under 4000 mm will now attract an 18 per cent GST instead of the earlier 28 per cent, significantly lowering the tax burden on these models. Similarly, the government has also brought down GST from 28 per cent to 18 per cent for small cars as well as motorcycles with engine capacity up to 350cc.

Previously, petrol and diesel cars equipped with larger engines were taxed at an effective rate of nearly 50 per cent, which included 28 per cent GST along with an additional 22 per cent compensation cess. The latest revision has simplified this slab, bringing it down to a uniform 40 per cent GST, thereby making several high-capacity models more affordable.

As per Mahindra’s updated pricing after the GST cut, the Bolero/Neo will see taxes fall from 31 per cent to 18 per cent, resulting in a benefit of up to ₹1.27 lakh. The XUV3XO (Petrol) tax rate has been reduced from 29 per cent to 18 per cent, offering savings up to ₹1.40 lakh, while the XUV3XO (Diesel) has shifted from 31 per cent to 18 per cent, giving buyers a maximum benefit of ₹1.56 lakh. The THAR 2WD (Diesel) will now be cheaper by up to ₹1.35 lakh with the revised tax from 31 per cent to 18 per cent, whereas the THAR 4WD (Diesel) moves from 48 per cent to 40 per cent, translating into a benefit of up to ₹1.01 lakh.

Similarly, the Scorpio Classic sees its effective tax fall from 48 per cent to 40 per cent, resulting in up to ₹1.01 lakh in savings. The Scorpio-N benefits even more, with a price reduction of up to ₹1.45 lakh as its rate also drops from 48 per cent to 40 per cent. Buyers of the Thar Roxx will enjoy savings of up to ₹1.33 lakh, while the flagship XUV700 is now cheaper by as much as ₹1.43 lakh thanks to the GST adjustment.

This announcement by Mahindra follows a similar decision from Tata Motors, which revealed on Friday that it would also pass on the GST benefits to its customers. However, Tata’s revised pricing will take effect from September 22.