Indian automaking giant, Mahindra and Mahindra (M&M), on Saturday, 6 September 2025, announced that the company has decided to cut the prices of its passenger vehicle lineup by up to ₹ 1.56 lakh to pass on the effect of the GST rate cuts to the customers, according to the official announcement.
The automaker has decided to make the price cut effective on an immediate basis, effective from Saturday, 6 September 2025, after the GST Council in its 56th meeting decided to lower the GST rates.
This means that people looking to buy a Mahindra car will now be able to do so at a discounted rate due to the GST cuts on automobiles. However, this price cut is only effective on the company’s ICE (Internal Combustion Engine) variants and not the electric vehicle portfolio.
How much will the Mahindra models cost?
The Mahindra passenger car models will now attract the new prices effective from 6 September 2025. (However, all the ex-showroom Delhi prices are based on the base model of the respective cars, excluding all other taxes and insurance costs)
1. Mahindra Bolero – The Bolero models will record a ₹1.27 lakh price cut on top of the ₹9,81,400 ex-showroom price.
2. Mahindra Bolero Neo – The Bolero Neo models will note a price drop of ₹1.27 lakh on top of the ex-showroom price of ₹9,96,600.
3. Mahindra XUV 3XO (Petrol) – The XUV 3XO (Petrol variants) will witness a ₹1.4 lakh price drop on the ex-showroom price of ₹7,99,000.
4. Mahindra XUV 3XO (Diesel) – The XUV 3XO (Diesel variants) will witness a ₹1.56 lakh price drop on the ex-showroom price of ₹9,99,001.
5. Mahindra Thar 2WD (Diesel) – The Thar 2WD (Diesel variants) will attract a price cut of ₹1.35 lakh on top of the ex-showroom price of ₹11,50,001.
6. Mahindra Thar 4WD (Diesel) – The Thar 4WD (Diesel variants) will record a ₹1.01 lakh price cut on top of the ex-showroom price of ₹16,12,000.
7. Mahindra Scorpio Classic – The Scorpio Classic variants will receive a ₹1.01 lakh price cut on top of the vehicle’s ₹13,76,599 ex-showroom price.
8. Mahindra Scorpio N – The Scorpio N variants will receive a price cut of ₹1.45 lakh on top of the ex-showroom price of ₹13,99,200.
9. Mahindra Thar Roxx – The Thar Roxx variants will witness a ₹1.33 lakh price cut on top of the ₹12,99,000 ex-showroom price.
10. Mahindra XUV 700 – Mahindra’s XUV 700 variants will note a ₹1.43 lakh price drop on top of their ex-showroom price of ₹14,49,000.
Industry-wide price cuts
Other automakers, such as Tata Motors and Renault India, have also announced price cuts for their vehicles due to the GST rate cuts from the central government’s GST Council last week.
Mint reported earlier that Tata Motors is cutting the prices of its passenger vehicles by up to ₹1.45 lakh, effective 22 September 2025, in line with the implementation of the new GST rates.
Others like Renault also announced a price cut up to ₹96,000 to pass on the effects of the GST cuts to the customers after the government’s rate rationalisation move.
Mint also reported that the GST on small cars has been reduced to 18% from its earlier 22% levels. These small cars refer to four-wheelers with an engine capacity of up to 1,200cc and length up to 4,000 mm, and diesel cars with an engine capacity of up to 1,500 cc and length up to 4,000 mm.
However, SUVs which are above the 1,500cc mark will now attract a flat 40% GST rate compared to their earlier 28% GST and 22% Cess rates, making the SUVs cheaper to the end customer.