Gear Up for Savings: M&M Slashes Prices as GST Wave Hits Automakers

Mahindra & Mahindra has announced significant price reductions across its entire ICE SUV lineup as a direct response to the government’s recent GST rate cuts. The move, effective September 6, is the latest in a wave of deep price drops from major automakers, including Tata Motors and Renault, as manufacturers pass on the GST relief to help boost consumer affordability and spur automotive sales.

 

Key Highlights: Mahindra’s New Pricing Strategy Post-GST

 

Mahindra’s price cuts range from Rs 1.01 lakh to Rs 1.56 lakh across popular models, now updated transparently at dealerships nationwide.

 

The lineup includes Bolero/Neo, XUV3XO (Petrol and Diesel), THAR 2WD/4WD, Scorpio Classic, Scorpio-N, Thar Roxx, and XUV700—each now within more attractive price brackets for buyers.

 

Bolero/Neo: up to Rs 1.27 lakh reduction

 

XUV3XO (Petrol): Rs 1.40 lakh reduction; XUV3XO (Diesel): Rs 1.56 lakh reduction

 

THAR 2WD (Diesel): Rs 1.35 lakh reduction; THAR 4WD (Diesel): Rs 1.01 lakh reduction

 

Scorpio Classic: Rs 1.01 lakh reduction

 

Scorpio-N: Rs 1.45 lakh reduction

 

Thar Roxx: Rs 1.33 lakh reduction

 

XUV700: Rs 1.43 lakh reduction

 

Mahindra’s move syncs with Tata Motors’ cuts (Nexon up to Rs 1.55 lakh; Harrier Rs 1.4 lakh; Safari Rs 1.45 lakh) and Renault’s reductions on entry-level cars, which have recently been announced after the GST Council’s tax resets.

 

GST Reform Details and Market Impact

 

The 56th GST Council Meeting introduced sweeping reforms, lowering GST on small cars (under 4 meters, sub-1,200cc petrol/1,500cc diesel) and motorcycles up to 350cc from 28% to 18%.

 

For larger cars and SUVs, GST is set at 40% but with the previous compensation cess being removed, dramatically reducing the final on-road price for consumers.

 

All auto parts will now attract a uniform 18% GST rate, streamlining costs for dealers, manufacturers, and buyers.

 

Industry experts forecast that prices across segments will fall by 8–10%, with direct consumer savings and lower RTO taxes due to reduced ex-showroom prices.

 

The GST reset is timed before festive season demand peaks, making it the ideal moment for buyers to make new car investments.

 

Additional Context: Tata, Renault, and Competitive Dynamics

 

Tata’s own lineup has seen similar reductions—Tiago (Rs 75,000), Altroz (Rs 1.1 lakh), Punch (Rs 85,000), Harrier (Rs 1.4 lakh), Safari (Rs 1.45 lakh), and Nexon (Rs 1.55 lakh). Maruti Suzuki and Renault have issued smaller cuts on popular small cars and hatchbacks, making personal mobility significantly more attainable ahead of Navratri festivities.

 

Expert opinions suggest that this GST bonanza will stimulate sector-wide demand, encourage upgrades for current owners, and create heightened competition among carmakers. The move is especially meaningful for SUV buyers, who can now benefit from world-class features at even more affordable prices.

 

When and How to Avail These Benefits

 

All Mahindra showrooms and online platforms update the new prices from September 6, with dealers advising buyers to verify final prices according to local taxes and variants.

 

Festive deals and additional manufacturer offers may further enhance the benefit to buyers in the coming weeks.

 

Conclusion

 

Mahindra’s swift response to GST rate cuts signals a consumer-friendly approach and injects fresh momentum into India’s auto sector. Alongside Tata and Renault, the price reductions make 2025 a breakthrough year for automotive affordability and access—ideal for buyers looking for value, variety, and savings in their next SUV or small car purchase.

 

Sources: Business Today, Economic Times, Rediff Money, CarDekho