Mahindra & Mahindra Passes On Full GST Benefits, Making Its Entire SUV Lineup More Affordable
In a bold move that positions it as one of the first automakers to act, Mahindra & Mahindra Ltd. (M&M) has announced it will pass on the full benefits of the GST 2.0 reforms to its customers across its entire Internal Combustion Engine (ICE) SUV portfolio. This initiative, which took effect immediately on September 6, 2025, makes Mahindra SUVs more accessible to a wider audience.
The price reductions follow the recent 56th GST Council meeting, which rationalized the tax structure on vehicles. The benefits vary by model and variant, with cuts of up to ₹1.56 lakh on the XUV3XO.
Mahindra Xuv3xo
New GST Rates and Their Impact on Mahindra SUVs
The GST 2.0 reforms have created a new tax structure for vehicles. For smaller cars (those with petrol engines up to 1200cc and diesel engines up to 1500cc, under 4 meters in length), the GST has been reduced from 28% to a new 18% slab. Larger vehicles, including SUVs, which were previously taxed at a total rate of up to 50% (28% GST + a cess of up to 22%), now have a simplified, flat 40% GST with no additional cess. This change results in a significant net price reduction for many of Mahindra’s top-selling models.
How Much Cheaper Are Mahindra SUVs After GST 2.0?
Mahindra has provided a detailed list of the maximum price reductions for each model, making it easier for customers to see the benefits.
- 2025 Mahindra XUV3XO: The petrol variants are now cheaper by up to ₹1.40 lakh, while the diesel variants see a maximum reduction of up to ₹1.56 lakh. ( Check Mahindra XUV 3XO Colors)
- 2025 Mahindra XUV700: The popular XUV700 will be more affordable by up to ₹1.43 lakh.
- 2025 Mahindra Scorpio-N: The Scorpio-N gets a significant price cut of up to ₹1.45 lakh.
- 2025 Mahindra Scorpio Classic: The Scorpio Classic is now cheaper by up to ₹1.01 lakh.
- 2025 Mahindra Thar: The Thar 2WD diesel variant sees a reduction of up to ₹1.35 lakh, while the Thar 4WD diesel and the Thar Roxx are now cheaper by up to ₹1.01 lakh and ₹1.33 lakh, respectively.
- 2025 Mahindra Bolero/Bolero Neo: The Bolero and Bolero Neo models are more affordable by up to ₹1.27 lakh.
FAQs: New GST Price List for Mahindra SUVs
1. How much is the price slashed on the 2025 Mahindra XUV700 after GST 2.0? The 2025 Mahindra XUV700 will see a price reduction of up to ₹1.43 lakh.
2. What is the new price of the 2025 Mahindra Scorpio-N after the GST reform? The new price for the 2025 Mahindra Scorpio-N will be lower by up to ₹1.45 lakh.
3. Will the 2025 Mahindra Thar be cheaper after GST 2.0? Yes, the Thar 2WD diesel variant will be cheaper by up to ₹1.35 lakh, and the Thar 4WD diesel variant will see a price cut of up to ₹1.01 lakh.
4. How much cheaper is the Mahindra Bolero Neo after GST 2.0? The Mahindra Bolero Neo will be cheaper by up to ₹1.27 lakh.
5. What is the biggest price reduction announced by Mahindra? The largest price reduction is for the Mahindra XUV3XO diesel variant, which will be cheaper by up to ₹1.56 lakh.
6. When will the new prices for Mahindra SUVs become effective? The new prices are effective immediately, as of September 6, 2025.
7. How will the price of the 2025 Mahindra Scorpio Classic change? The Scorpio Classic is now cheaper by up to ₹1.01 lakh.
Mahindra Xuv3xo
8. What is the difference in GST rates for smaller vs. larger SUVs? Smaller SUVs like the XUV3XO (petrol and diesel) will see a GST reduction to 18%. Larger SUVs like the XUV700, Scorpio-N, and Thar 4WD will move to a flat 40% GST, which is a reduction from their previous total tax of around 48-50%.
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