Mahindra Thar Roxx, Xuv 3xo, Scorpio, XUV700 Price decreased by Rs 1.56 lakh

The Indian SUV market is buzzing after Mahindra announced a big price cut across its popular internal combustion engine (ICE) portfolio. The company confirmed that it will pass on the benefit of the new GST reform directly to buyers, well before the official government implementation date.

The decision follows the 56th GST Council meeting, where it was decided that the overall tax rate on SUVs would be reduced. While the government directed that the revised GST will apply from September 22, Mahindra has gone ahead and offered customers the benefits from September 6 itself.

This move makes models like the Bolero Neo, Thar Roxx, XUV 3XO, Scorpio, and XUV700 more affordable, with the highest price cut of Rs 1.56 lakh available on the diesel version of the XUV 3XO.

GST 2.0 Impact On Cars

The new GST structure, also referred to as GST 2.0, has been designed to ease the tax burden on customers. SUVs, which earlier attracted a combined 48 percent GST and cess, will now be taxed at a slightly lower rate of 40 percent.

This 8 percent reduction is not a small figure when it comes to the automobile industry. For mid-size and large SUVs that are already priced in the premium range, the tax cut translates into savings of over a lakh rupees on several models.

By passing on the benefits, automakers like Mahindra aim to make SUVs more attractive to Indian buyers, who form the largest consumer base for this segment.

Mahindra’s Early Implementation

Instead of waiting for the September 22 deadline, Mahindra has decided to begin offering discounts from September 6. This means customers visiting dealerships can already book or buy SUVs at reduced prices.

The company stated that the relief amount will vary depending on the model and fuel type. In some cases, the benefit is just over Rs 1 lakh, while in others, it goes up to Rs 1.56 lakh.

This proactive approach shows Mahindra’s intent to capture more sales before the festive season while also staying ahead of competitors.

Model-Wise GST Benefit

Here is a breakdown of how much each Mahindra SUV will get cheaper after the new GST rates are applied:

Which Models Benefit the Most?

• XUV 3XO Diesel: This variant enjoys the highest reduction of Rs 1.56 lakh, making it the biggest winner in Mahindra’s lineup.

• Scorpio-N and XUV700: Both see price cuts above Rs 1.4 lakh, strengthening their appeal in the premium SUV market.

• Thar Roxx: With a benefit of Rs 1.33 lakh, it becomes even more attractive for off-road enthusiasts.

• Thar 4WD and Scorpio Classic: These models have relatively smaller reductions of Rs 1.01 lakh, but the price cut still makes them more value-driven choices.

Industry Response

The GST Council’s decision has been welcomed across the automobile industry. Several manufacturers have already announced similar price cuts:

• Tata Motors has adjusted prices across its SUV portfolio.

• Toyota has also reduced prices on the Fortuner and other models.

• Other companies are expected to follow, ensuring that customers across different brands enjoy tax-linked benefits.

This synchronized approach is likely to heat up competition in the SUV market.

What This Means for Buyers

For Indian customers, the revised prices mean more affordability and choice. The SUV segment was already the fastest-growing category in India, and with reduced prices, the demand is expected to rise further.

Here are the key advantages for buyers:

• Lower cost of ownership: With price reductions of Rs 1 lakh or more, buyers save significantly on upfront costs.

• Better financing options: A reduced ex-showroom price also lowers loan amounts and EMIs.

• Higher value for money: Customers can now consider higher trims or diesel variants that may have earlier been out of budget.

• Early festive season benefit: Since Mahindra implemented the changes from September 6, customers don’t have to wait till later in the month to enjoy discounts.

Market Outlook

Experts predict that GST 2.0 will give a strong push to car sales during the upcoming festive period. Lower prices, combined with seasonal offers, will likely lead to record-breaking numbers for SUV sales.

Additionally, by acting ahead of schedule, Mahindra has set the tone for other automakers. It shows how competitive the SUV space has become, where even a price difference of Rs 50,000 can influence buying decisions.

The GST 2.0 reform is already showing its impact on the automobile market, with Mahindra being one of the first brands to implement the revised prices. By offering reductions of up to Rs 1.56 lakh, the company has made its SUVs more accessible and attractive to Indian buyers.

As other automakers follow suit, the SUV market is set to grow even stronger, offering customers a wider choice of affordable yet feature-packed vehicles.