In a landmark move for the Indian automotive industry, Mahindra & Mahindra has become the first passenger vehicle brand to officially announce that it will pass on the complete benefits of the recent Goods and Services Tax (GST) overhaul to its customers. Effective from September 6, 2025, Mahindra will offer substantial price reductions across its entire internal combustion engine (ICE) SUV portfolio, making its vehicles significantly more affordable.
The GST reform, announced recently, brought down the overall GST + cess rates applicable to passenger vehicles. Mahindra’s decision to pass on the full benefits directly to buyers ensures that customers enjoy the maximum possible savings without any dilution. The price reductions span across Mahindra’s most popular SUV models, ranging from the entry-level Bolero Neo to the premium XUV700.
According to the new GST structure, the rates for select SUVs such as the Bolero, XUV3XO, and Thar 2WD have been reduced from 29–31% earlier to 18%. Larger SUVs like the Thar 4WD, Scorpio Classic, Scorpio-N, Thar Roxx, and XUV700, which earlier attracted 48% GST + cess, will now be taxed at 40%. This uniform reduction has translated into benefits ranging from approximately Rs 1 lakh to Rs 1.56 lakh, depending on the model and variant.
Breaking down the benefits model-wise, the Bolero and Neo customers will now save up to Rs 1.27 lakh with the revised taxation. The XUV3XO petrol variant sees a benefit of Rs 1.40 lakh, while its diesel counterpart offers even greater savings at Rs 1.56 lakh. The Thar 2WD diesel version comes with a price cut of Rs 1.35 lakh, making it more appealing for buyers looking for a rugged yet affordable SUV option.
In the higher taxation category, the Thar 4WD diesel and Scorpio Classic both offer benefits of Rs 1.01 lakh. The Scorpio-N, one of Mahindra’s most popular models in recent years, becomes more accessible with savings of up to Rs 1.45 lakh. Similarly, the newly launched Thar Roxx offers a benefit of Rs 1.33 lakh, while the premium XUV700, positioned as Mahindra’s flagship SUV, gets a reduction of Rs 1.43 lakh.
The move is being seen as a strategic step by Mahindra to strengthen its position in the fiercely competitive SUV market. With rival brands likely to follow suit, Mahindra has positioned itself as a customer-first automaker by being the earliest to transfer the entire tax benefits without delay. This timely announcement comes just ahead of the festive season, when car sales typically peak, further boosting customer sentiment.
Industry experts believe that this decision will not only drive higher volumes for Mahindra but will also encourage fence-sitters to make purchase decisions sooner. SUVs have consistently been the fastest-growing segment in India’s passenger vehicle market, and with such a price correction, Mahindra stands to gain significantly in terms of market share.
Moreover, the price advantage strengthens Mahindra’s already dominant presence in the SUV segment, where models like the Scorpio, Thar, and XUV700 enjoy cult-like popularity. The company’s decision to extend the benefits across its entire ICE SUV portfolio, rather than select models, highlights its aggressive approach to consolidating leadership in the utility vehicle space.
Customers are expected to see these price benefits immediately, starting September 6, 2025. Dealerships across the country have begun updating their price lists, ensuring transparency for prospective buyers. While the final benefit may vary depending on the exact model and variant, the overall impact is substantial and customer-friendly.
With this proactive step, Mahindra & Mahindra has set a new benchmark in the industry, aligning its strategy with the evolving tax structure while prioritizing customer value. As the festive season approaches, these price cuts are likely to trigger a surge in bookings for Mahindra SUVs, reinforcing the brand’s reputation as one of the most trusted and forward-looking automakers in India.
