Mahindra Leads with Pre-GST Discounts starting today
New Delhi, September 6, 2025: Automotive giant Mahindra & Mahindra has rolled out reduced prices on its ICE SUVs weeks before the government’s revised GST structure officially comes into force on September 22.
Mahindra Group Chairman Anand Mahindra made the announcement on social media platform X, writing: “Action. Not just promises. Thank you, Team @Mahindra_Auto.” His post was accompanied by an image stating, “Everyone said 22nd Sept, we said NOW. Avail GST benefits starting 6th Sept. Get up to ₹1.56 lakh.”
The move comes as part of GST 2.0 reforms, which slash tax rates for small and mid-sized vehicles from 28% to 18%, and for larger SUVs from 48% to 40%. By offering these discounts early, Mahindra hopes to attract festive season buyers and gain a competitive edge.
SUVs Witness Major Savings
Mahindra confirmed that several of its top-selling internal combustion engine (ICE) SUVs are now significantly cheaper.
- XUV3XO (Diesel): Savings up to ₹1.56 lakh as GST drops from 31% to 18%
- XUV3XO (Petrol): Benefit of up to ₹1.40 lakh
- Thar 2WD (Diesel): Price cut worth ₹1.35 lakh
- Bolero/Neo: Savings of around ₹1.27 lakh
- Scorpio Classic: Reduced by up to ₹1.01 lakh
For larger SUVs, the changes are equally substantial:
- Scorpio-N: Up to ₹1.45 lakh benefit
- Thar Roxx: Discount of ₹1.33 lakh
- XUV700: Price cut of ₹1.43 lakh
These early reductions position Mahindra as one of the first automakers to pass GST benefits directly to customers.
Wider Industry Impact of GST 2.0
The auto industry, one of the biggest contributors to India’s economy, has long demanded rationalization of indirect taxes. The new GST structure now places:
- Small petrol/LPG/CNG cars (≤1200 cc, ≤4000 mm): 18% GST (down from 28%)
- Small diesel cars (≤1500 cc, ≤4000 mm): 18% GST (down from 28%)
- Three-wheelers and goods transport vehicles: 18% GST (down from 28%)
- Two-wheelers up to 350 cc: 18% GST (down from 28%)
However, premium motorcycles with engines above 350 cc could become costlier by nearly 6.9%, due to adjustments in the higher tax bracket.
Meanwhile, the government has retained the 5% GST on electric vehicles (EVs), reinforcing its commitment to cleaner mobility options.
Affordability Boost for Buyers
According to analysts at Crisil Intelligence, the new tax regime will make a wide range of cars and two-wheelers more affordable:
- Entry-level hatchbacks (e.g., WagonR) and compact sedans (e.g., Dzire) may see an 8.5% price cut.
- Compact SUVs like Brezza and MPVs such as Ertiga could drop by about 3.5%.
- Mid-SUVs like Hyundai Creta are expected to fall by 3.5–4%.
- Premium SUVs (e.g., XUV700, Toyota Innova) may see a 6.7% drop.
- ICE two-wheelers could become cheaper by nearly 7.8%, spurring mass-market demand.
Industry experts believe these changes will revive demand in rural and urban markets, especially ahead of the festive season.
Anand Mahindra Welcomes Reform
Anand Mahindra praised the government’s tax reform, highlighting the importance of keeping EVs under the 5% GST slab. “This is a vital step in advancing India’s clean mobility mission,” he said.
By extending GST benefits early, Mahindra not only strengthens its brand positioning but also sets an example for other automakers. Experts expect rivals like Maruti Suzuki, Hyundai, and Tata Motors to follow suit in the coming weeks.