Mahindra & Mahindra has announced significant price reductions across its internal combustion engine SUV portfolio, passing on the complete benefits of the revised Goods and Services Tax structure to customers.
The new prices, which will take effect from 22 September 2025, will see savings of up to ₹1.56 lakh depending on the model and variant.
How much can buyers save on Mahindra ICE SUVs?
The company confirmed that the highest price cut will be offered on the XUV3XO Diesel, which now becomes cheaper by as much as ₹1.56 lakh. Other popular models, including the Scorpio-N, XUV700, Thar and Bolero Neo, will also become more affordable, with reductions ranging between ₹1 lakh and ₹1.45 lakh. The Thar Roxx, Thar 2WD and Thar 4WD will see benefits between ₹1.01 lakh and ₹1.35 lakh, while the Scorpio Classic will become cheaper by about ₹1.01 lakh.
GST 2.0: A new tax structure for automobiles
The latest reform in automobile taxation, referred to as GST 2.0, introduces a simplified two-slab structure of five per cent and 18 per cent, alongside a special 40 per cent slab for larger cars, SUVs and premium motorcycles above 350 cc. Crucially, the compensation cess that was previously applied over and above GST has been removed, leading to a more straightforward and, in many cases, lighter tax burden for buyers.
Impact on small and large vehicles
For smaller cars, defined as petrol vehicles up to 1,200 cc and diesel vehicles up to 1,500 cc, the tax rate has been brought down to 18 per cent from the earlier 28 per cent. Larger vehicles, including full-size SUVs above four metres, now fall under the 40 per cent slab. Although this appears higher on paper, the removal of the cess means that these vehicles are effectively cheaper than before, when the overall rate ranged between 45 and 48 per cent.
For buyers, the move represents an opportunity to purchase SUVs at lower prices just ahead of the festive season, a period that traditionally drives strong demand in the Indian automobile market. While smaller and mid-size SUVs such as the XUV3XO will deliver the most substantial benefits, even larger models like the Scorpio-N and XUV700 are set to become slightly more affordable.