Mahindra & Mahindra Ltd. (M&M), India’s leading SUV manufacturer, has taken a decisive step to make its vehicles more affordable by fully passing on the benefits of the revised GST 2.0 rates to its customers. Effective today, the company’s entire ICE SUV portfolio is available at reduced prices, with savings of up to ₹1.56 lakh depending on the model and variant.
The announcement comes just days after the 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, which introduced a simplified two-slab GST structure for automobiles. Mahindra has become the first passenger vehicle brand to roll out the complete tax benefit to customers across its SUV range.
Why This Matters
The Indian automotive industry has been closely tracking GST reforms, with expectations that tax rationalization would make SUVs more affordable. With SUVs driving over 50% of car sales in India, the GST reduction is seen as a landmark reform. Mahindra’s proactive move positions it to capture festive demand, especially as buyers weigh multiple options before Diwali.
According to industry analysts, Mahindra’s decision could also push competitors like Tata Motors, Hyundai, Kia, and Toyota to follow suit and pass on GST benefits to their customers.
New GST Rates on SUVs
The GST 2.0 reforms have introduced a simpler structure for the automobile sector:
- Smaller SUVs (like the XUV 3XO, Bolero, Bolero Neo) now attract 18% GST, reduced from 29–31%.
- Larger SUVs (like Scorpio N, Thar 4WD, XUV700) now attract 40% GST, reduced from 48%.
This tax reduction translates into direct savings for consumers, making SUVs more attractive for both first-time buyers and those looking to upgrade.
Model-Wise Price Benefits
Here’s a breakdown of how much customers can save across Mahindra’s popular SUV line-up:
| Model / Variant | GST Reduction Benefit (Approx.) |
|---|---|
| Bolero / Bolero Neo | ₹1.27 lakh |
| XUV 3XO Petrol | ₹1.40 lakh |
| XUV 3XO Diesel | ₹1.56 lakh |
| Thar 2WD Diesel | ₹1.35 lakh |
| Thar 4WD Diesel | ₹1.01 lakh |
| Scorpio Classic | ₹1.01 lakh |
| Scorpio N | ₹1.45 lakh |
| Thar Roxx | ₹1.33 lakh |
| XUV700 | ₹1.43 lakh |
This structured pricing clearly shows that XUV 3XO Diesel buyers enjoy the maximum benefit of ₹1.56 lakh, while even entry-level models like the Bolero deliver significant savings of over ₹1 lakh.
Boost to Festive Season Demand
The timing of this announcement is crucial. With the festive season around the corner, automobile sales traditionally witness a surge, and Mahindra’s revised prices are expected to draw in huge numbers of buyers.
“By passing on the full GST benefits, Mahindra has created a win-win scenario for customers who were on the fence about upgrading. With savings crossing the ₹1 lakh mark across multiple models, the brand has positioned itself as one of the most value-driven choices in the SUV market,” said an auto analyst tracking the sector.
Mahindra’s Market Leadership Strategy
Mahindra has consistently held a dominant position in India’s SUV market, with models like the Scorpio, Thar, and XUV700 enjoying cult followings. Now, with lower prices, the brand aims to:
- Strengthen its market leadership in the SUV space.
- Attract new first-time SUV buyers, especially in Tier-2 and Tier-3 cities.
- Encourage upgraders to shift from smaller hatchbacks and sedans to SUVs.
- Compete strongly against rivals like Tata Harrier, Safari, Hyundai Creta, Kia Seltos, and Toyota Fortuner.
By acting swiftly, Mahindra has ensured that it doesn’t lose momentum to rivals in a competitive segment where pricing plays a decisive role.
Industry Impact of GST 2.0
The GST Council’s decision to rationalize automobile taxes is being hailed as one of the most significant reforms for the auto industry in recent years.
- Affordability Boost: More customers can now consider SUVs, which were previously priced out of reach.
- Demand Stimulation: Auto companies are expected to see a rise in sales volumes, especially during the festive season.
- Simplified Compliance: The two-slab GST structure reduces confusion for both manufacturers and dealers.
- Competitive Push: Other automakers may soon announce similar GST benefit transfers to retain their market share.
What Customers Should Know
- Savings will vary depending on the model and variant chosen.
- On-road prices will also reduce, since insurance and road tax are calculated on ex-showroom prices.
- Festive offers and finance schemes from Mahindra could further sweeten the deal.
Customers planning to book Mahindra SUVs like the Thar, Scorpio N, XUV700, and Bolero this festive season can now expect substantial savings plus attractive exchange and finance options.
Final Word
Mahindra’s decision to implement GST 2.0 benefits immediately underscores its customer-first approach and long-term market strategy. With SUVs now cheaper by over ₹1 lakh, demand is expected to rise sharply, giving Mahindra a strong festive season.
For Indian consumers, this move not only makes premium SUVs more accessible but also signals a new phase of competition in the auto industry, where pricing and value for money will decide the winners.
Disclaimer : This article is intended for informational purposes only. Prices, benefits, and schemes may vary based on location, dealership, and variant. Customers are advised to check with their nearest Mahindra showroom for the most updated details.
