Car prices: Mahindra cuts rates by up to Rs 1.56 lakh after GST reform; XUV700, Thar, Scorpio see big drops

Mahindra & Mahindra (M&M) on Saturday announced a reduction of up to Rs 1.56 lakh across its passenger vehicles range, passing on the benefit of the recently announced GST rate cuts to customers.

The move comes after the revamped Goods and Services Tax (GST) structure was cleared at the 56th GST Council meeting on September 3. Though the revised tax slabs are officially set to take effect from September 22, M&M has decided to implement them earlier.

The revised prices for all applicable internal combustion engine (ICE) models are effective from September 6 and have been updated across dealerships and digital platforms, the company said in a statement, PTI reported.



Mahindra Group Chairman Anand Mahindra, in a post on social media platform X, confirmed the decision, saying, “Action. Not just promises. Thank you, Team @Mahindra_Auto.” He attached an image stating, “Everyone said 22nd Sept, we said NOW. AVAIL GST BENEFITS STARTING 6th SEPT. GET UPTO RS 1.56 LAKH.”

Among specific models, the Bolero/Neo range has become cheaper by Rs 1.27 lakh, while the XUV3XO petrol and diesel variants are down by Rs 1.4 lakh and Rs 1.56 lakh, respectively. Prices of the Thar 2WD (diesel) and Thar 4WD (diesel) have been reduced by Rs 1.35 lakh and Rs 1.01 lakh, respectively. The Scorpio Classic has seen a Rs 1.01 lakh cut, the Scorpio-N a Rs 1.45 lakh cut, the Thar Roxx a Rs 1.33 lakh cut, and the XUV700 a Rs 1.43 lakh cut. Larger SUVs like the Scorpio-N, Thar Roxx, and XUV700, which previously attracted a higher tax rate of 48 per cent, now fall under the reduced slab of 40 per cent.

The Mumbai-based automaker said the cuts are aimed at ensuring transparency and giving customers the full benefit of the GST rationalisation. Reacting to the tax restructuring, Anand Mahindra also praised the government’s decision to retain the 5 per cent GST rate on electric vehicles (EVs), calling it vital for advancing India’s clean mobility mission.

Other automakers, including Tata Motors and Renault India, have also announced price reductions following the GST reform.

According to Crisil Intelligence, GST 2.0 will make ICE vehicles more affordable, boosting sales across the automobile sector. Entry-level hatchbacks such as the Wagon R, premium hatchbacks like the Swift, compact sedans such as the Dzire, and sub-compact SUVs like the Punch could become cheaper by around 8.5 per cent. Large sedans such as the Virtus, compact SUVs like Brezza, mid-SUVs like Creta, and MPVs like Ertiga may see a 3.5 per cent reduction. Premium SUVs, including the XUV700, and bigger MPVs like the Innova are projected to fall by nearly 6.7 per cent.

Two-wheelers are also set to benefit, with most ICE bikes becoming nearly 7.8 per cent cheaper, although premium models with engines above 350 cc could see prices rise by around 6.9 per cent.