In line with the newly announced “GST 2.0” regime following the 56th GST Council Meeting on 3 September, Mahindra & Mahindra has rolled out up to ₹1.56 lakh in price reductions across its internal combustion engine (ICE) SUV portfolio, effective 6 September 2025, passing full benefits directly to customers .
🔥 Model-Wise Benefits: What Buyers Will Save
According to the company:
XUV3XO (Diesel): ₹1.56 lakh
XUV3XO (Petrol): ₹1.40 lakh
XUV700 (Diesel & Petrol): Up to ₹1.43 lakh
Bolero / Neo: Up to ₹1.27 lakh
Thar 2WD (Diesel): ₹1.35 lakh
Thar Roxx: ₹1.33 lakh
Thar 4WD (Diesel): ₹1.01 lakh
Scorpio Classic: ₹1.01 lakh
Scorpio-N: ₹1.45 lakh
Why These Cuts Matter
GST 2.0 shifts all midsize and large vehicles (over 4 m or >1500 cc / 170 mm ground clearance) into a flat 40% GST slab, eliminating the cess (previously adding 15–22%), while smaller SUVs now attract just 18% GST—down from 28%+ cess .
Consequently, models formerly burdened with high tax incidence—like the Thar, Scorpio, and XUV-series—now deliver straightforward, substantial savings for customers, enhancing affordability without compromising features.
Coverage Highlights by Vehicle Segment
Entry & Compact SUVs:
Bolero/Neo and XUV3XO fall under the new 18% GST bracket, yielding some of the highest percentage-wise price drops (from ~30–31% down to just 18%) .
Lifestyle & Premium SUVs:
Vehicles like Thar, Thar Roxx, Scorpio Classic/N, and XUV700 now taxed at 40% (without cess) instead of 48–50%, making high-spec SUVs ₹1+ lakh cheaper on-road .
Real-World Savings: What It Means for Buyers
For a Thar Roxx priced around ₹13 lakh ex-showroom, the ₹1.33 lakh benefit translates to a sharp on-road sticker below ₹12 lakh in many cities. Similarly, a XUV700 previously stickered above ₹14 lakh may now be within ₹12.5–13 lakh range post-benefit .
Sector Week in Review: Market Impact & Timing
This move is timed perfectly for the festive quarter. With GST cuts announced just ahead of Navaratri, Mahindra expects a booking surge as buyers flush budgets into newly affordable SUV options.
Analysts and auto equity brokers including Emkay Global, Jefferies, and ICICI Direct rate Mahindra as GST 2.0’s top auto beneficiary (especially SUVs + tractors), and its stock jumped 6–9% on the news—leading sectoral gains on the Nifty Auto index .
📝 Bottom Line
With the government restructuring GST slabs—reducing effective tax burdens and scrapping cess—Mahindra & Mahindra has taken swift action to pass 100% of consumer savings to SUV buyers across its ICE range. Depending on the model, customers now stand to save between ₹1.0–1.56 lakh, making premium SUVs more attainable and setting the stage for a festival-season sales revival.
