Mahindra SUVs get cheaper by ₹1.5L following GST reduction
What's the story
Mahindra and Mahindra has announced a price cut across its entire internal combustion engine (ICE) SUV range, effective September 6, 2025. The move comes after the recent reduction in Goods and Services Tax (GST) rates. The company said it will pass on the benefits of this GST reduction directly to customers, with savings going as high as ₹1.56 lakh depending on the model.
Tax reform
Price revision follows GST Council's decision to reduce tax rates
The price revision comes after the 56th GST Council meeting, where Finance Minister Nirmala Sitharaman introduced GST 2.0. The new tax regime aims to make mobility more affordable and rationalize tax rates across the automotive industry. The Council reduced GST on small cars and motorcycles up to 350cc from 28% to 18%, making these vehicles more affordable for consumers.
Vehicle categories
Larger vehicles, including SUVs with bigger engine capacities, also benefit
Larger vehicles, including SUVs with bigger engine capacities, will now be taxed at 40% GST without cess. This is a major change from the earlier structure of 28% plus 22% cess. The agriculture sector also benefits from this tax reform as GST on tractors, harvesters, threshers, fodder balers, and similar equipment has been reduced from 12% to just 5%.
Price adjustments
Customers can save up to ₹1.56 lakh
Mahindra has confirmed that the price revisions will apply to its entire ICE SUV range. This means customers will be able to take full advantage of the GST cuts. The models affected include Bolero Neo, Thar, and XUV 3XO, among others. Depending on the model, buyers can save up to ₹1.56 lakh with these revised prices starting September 6.