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Mahindra Reduces Car Prices After GST Slab Revision 2025
Auto Updates | Sep 08, 2025 | Posted By: Kartik Rangam
The new GST reform is set to make things affordable, including cars. Although the new rates are supposed to come into effect from 22nd September 2025, Mahindra and Mahindra has introduced a downward price revision for its ICE cars effective immediately. The carmaker announced the price cut on 6th September, which includes models such as the Thar Roxx, Bolero Neo and XUV700. Below is a detailed breakdown of the price cuts:
Mahindra GST Price Cut
Mahindra has announced the following price cuts for its ICE SUVs:
| Model Name | Current Total Tax | New GST | Benefits |
| Bolero and Bolero Neo | 31% | 18% | Up to 1.27 lakh |
| XUV3XO (petrol) | 29% | 18% | Up to 1.40 lakh |
| XUV3XO (diesel) | 31% | 18% | Up to 1.56 lakh |
| Thar 2WD (diesel) | 31% | 18% | Up to 1.35 lakh |
| Thar 4WD (diesel) | 48% | 40% | Up to 1.01 lakh |
| Scorpio Classic | 48% | 40% | Up to 1.01 lakh |
| Scorpio-N | 48% | 40% | Up to 1.45 lakh |
| Thar Roxx | 48% | 40% | Up to 1.33 lakh |
| XUV700 | 48% | 40% | Up to 1.43 lakh |
*Benefits depend on the model and variant chosen
The price cut encompasses the entire ICE SUV lineup of the carmaker. Diesel-powered sub-4m SUVs such as the Thar 2WD and XUV3XO have seen the highest benefits.
Mahindra also sells three EVs, the BE6, XEV 9e and XUV400. The prices of these models will remain the same as GST on electric vehicles remains unchanged. This, however, will widen the gap between ICE and electric vehicles.
New GST Slabs
With the introduction of new slabs, Mahindra’s sub-4 m SUVs with a diesel engine have seen the highest tax reduction. The new GST slabs for four-wheeler vehicles are as follows:
| Car Type | Engine and Length | New GST | Current Total Tax (GST+Cess) |
| Small Car (Petrol) | Up to 1200 cc and less than 4 meters | 18% | 29% |
| Small Car (Diesel) | Up to 1500 cc and less than 4 meters | 18% | 31% |
| Passenger Car | Up to 1500 cc | 40% | 45% |
| Passenger Car | Above 1500 cc | 40% | 48% |
| SUVs | Above 1500 cc and longer than 4 meters | 40% | 50% |
| Hybrid Vehicles | Up to 1200 cc (petrol) or 1500 cc (diesel) and less than 4 meters | 18% | 28% |
| Hybrid Vehicles | Above 1200 cc (petrol) or 1500 cc (diesel) or longer than 4 meters | 40% | 43% |
| Luxury Cars | Above 1500 cc | 40% | 48% |
| Electric Cars | No conditions | 5% | 5% |
The new GST reform announced on 3rd September 2025 has simplified tax rates for the automotive industry. Conventional fuel vehicles will be divided into two slabs, 18% and 40% depending on the criteria set by the government. While the GST has increased, the removal of cess has made all four-wheelers more affordable. You can read more about the impact of the new GST reforms here.
Published on Sep 08, 2025
