Mumbai, India —In a move set to redefine the dynamics of India’s automotive market, Mahindra & Mahindra Ltd. has announced huge price cuts across its SUV portfolio. This landmark decision comes just days after the 56th GST Council meeting held on September 3, 2025, where revised GST rates on passenger vehicles were introduced. From September 6, 2025, Mahindra’s all-SUV prices reflect the GST benefit passed on to Indian consumers with significant savings—up to ₹1.56 lakh.
The announcement has created waves in the industry and among car buyers. Mahindra’s latest move is being described as one of the boldest responses to the new GST 2.0 structure. For those planning to buy SUVs such as the Mahindra Thar, Scorpio-N, Bolero, or the premium XUV700. This price revision could be a game changer.
Detailed breakdown of Mahindra’s SUV price cuts
Mahindra has slashed prices across its entire ICE (Internal Combustion Engine) SUV lineup, ensuring that every customer benefits from the tax reform. Let’s take a closer look at the SUV-wise savings:
- Mahindra Bolero & Bolero Neo – Price reduced up to ₹1.27 lakh, making it one of the most affordable rugged SUVs in India.
- Mahindra XUV3XO—The petrol variant is reduced by ₹1.40 lakh, and the diesel variant tops the list with a ₹1.56 lakh reduction.
- Mahindra Thar (3-door)—The 2WD Diesel now costs ₹1.35 lakh less, and the 4WD Diesel gets ₹1.01 lakh less.
- The Scorpio Classic gets a ₹1.01 lakh price cut.
- The Mahindra Scorpio-N SUV is now cheaper by ₹1.45 lakh, giving it a strong edge in the competitive SUV market.
- Mahindra Thar Roxx (5-door)—Price down by ₹1.33 lakh, strengthening Mahindra’s presence in the lifestyle SUV segment.
- Mahindra XUV700 – Mahindra’s flagship SUV sees a drop of ₹1.43 lakh, making luxury and technology-packed SUVs more affordable.
These new prices are already updated at dealerships and also on Mahindra’s official digital platforms, ensuring transparency and accessibility for buyers.
Mahindra’s strategic intent—market leadership
This Mahindra price cut is not just a response to tax changes—it is a strategic masterstroke. By immediately passing on the 2025 GST benefit to customers, Mahindra has positioned itself as a customer-first brand while strengthening its market leadership.
The SUV segment is currently the hottest in the Indian car market, with models like the Scorpio-N, XUV700, and Thar having huge waiting periods. With these price reductions, Mahindra is expected to see a surge in bookings during the upcoming festive season of 2025.
Ripple Effect Across the Indian Car Market
Mahindra’s decision is also part of a broader trend triggered by the GST Council’s revised automobile tax structure. Just days earlier, Tata Motors announced similar price cuts, effective September 22, 2025, aligning its portfolio with the GST 2.0 benefits.
Here’s a snapshot of Tata Motors’ revised pricing:
- Tiago hatchback—cheaper by ₹75,000.
- Tigor sedan – Price cut of ₹80,000.
- Altroz hatchback – Reduced by ₹1.10 lakh.
- Tata Punch SUV – Cheaper by ₹85,000.
- Tata Nexon – Massive ₹1.55 lakh price reduction.
- Tata Curvv (new model) – Price cut of ₹65,000.
- Harrier SUV – Reduced by ₹1.40 lakh.
- Tata Safari – ₹1.45 lakh cheaper.
The competitive Mahindra vs. Tata Motors price cuts have set the stage for a fierce SUV battle, benefiting customers more than ever before.
The New GST 2.0 Framework Explained
The GST Council’s 56th meeting, chaired by Finance Minister Nirmala Sitharaman, introduced a simplified taxation structure for automobiles, effective September 22, 2025.
The revised rules create a two-tier tax system:
- Smaller vehicles (under 4,000 mm)
- Petrol, LPG, or CNG engines up to 1,200 cc
- Diesel engines up to 1,500 cc
- GST – 18% (reduced from earlier rate).
- Larger vehicles (over 4,000 mm)
- Petrol engines above 1,200 cc
- Diesel engines above 1,500 cc
GST – 40%.
These changes are designed to encourage sales of smaller and mid-sized cars, which form the bulk of India’s passenger vehicle market. By reducing taxes on compact and mid-range vehicles, the government aims to boost affordability, stimulate demand, and support car manufacturers.
Why This Matters for Car Buyers
For Indian customers, the Mahindra and Tata Motors SUV price cut mark the beginning of a new era of affordability. Cars that were once dreams are now within reach for middle-class buyers.
For example:
A family looking at the Mahindra XUV700, previously stretching their budget, now gets an SUV packed with luxury features at ₹1.43 lakh less.
First-time car buyers considering compact SUVs like the XUV3XO or Tata Nexon now enjoy unprecedented affordability.
Adventure lovers can finally own a Mahindra Thar Diesel, saving over ₹1.3 lakh, making road trips and off-roading more accessible.
This GST benefit in 2025 is likely to accelerate car ownership in semi-urban and rural markets, where Mahindra’s Bolero and Scorpio already enjoy cult status.
Industry Outlook: A Festive Season Boom
With the festive season around the corner, analysts predict that the Mahindra SUV price cut and rival discounts could trigger a huge record in car sales. Dealers expect higher footfall, longer booking queues, and a rush for top-selling models.
Industry experts believe this GST-led auto revival will not only benefit manufacturers but also create a positive ripple effect across theconomy—fuelingel demand for financing, insuranceaccessories,es and second-hand car markets.
Final Takeaway On SUV Price Cut
The Mahindra SUV price reduction in 2025 marks a turning point for India’s automobile sector. With savings up to ₹1.56 lakh, customers now have the golden opportunity to purchase their beloved SUVs at more affordable rates.
Combined with Tata Motors’ price cuts, the Indian car market is gearing up for an unprecedented price war. For buyers, this is the best time to invest in a new car, while for manufacturers, the challenge will be to maintain supply amid booming demand.
As the GST 2.0 reforms reshape the automotive landscape, one thing is clear: Indian car buyers are the biggest winners.’
