Mumbai — In a move that gives car buyers a head start on tax savings, Mahindra & Mahindra (M&M) has announced that it will pass on the benefits of the revised Goods and Services Tax (GST) regime to customers from today, weeks ahead of the official rollout on September 22.
Mahindra Group Chairman Anand Mahindra shared the update on social media platform X, calling it “Action. Not just promises.” He praised the company’s automobile division for moving swiftly to extend revised discounts aligned with the new GST structure.
The decision translates into significant price reductions across the automaker’s portfolio. Among the most notable, the XUV3XO Diesel offers savings of up to ₹1.56 lakh as its GST rate drops from 31% to 18%. The XUV3XO Petrol and Thar 2WD Diesel also bring relief to buyers, with benefits of ₹1.40 lakh and ₹1.35 lakh, respectively. Popular family vehicles such as the Bolero/Neo and Scorpio Classic offer discounts of ₹1.27 lakh and ₹1.01 lakh.
Larger SUVs, previously under the steep 48% tax slab, now fall under the reduced 40% category. This shift brings benefits of up to ₹1.45 lakh on the Scorpio-N, ₹1.33 lakh on the Thar Roxx, and ₹1.43 lakh on the XUV700.
Mahindra welcomed the government’s restructuring of tax slabs, stressing that retaining the 5% GST rate on electric vehicles will continue to support India’s clean mobility mission. “This will accelerate both EV adoption and ICE affordability,” Mahindra said.
The broader industry is also expected to gain momentum under what is being termed “GST 2.0.” According to Crisil Intelligence, lowering the GST on small petrol and diesel cars, hybrids, CNG, and LPG vehicles from 28% to 18% will make cars more affordable and stimulate domestic sales.
Entry-level hatchbacks like the Wagon R, premium hatchbacks including the Swift, and compact sedans such as the Dzire are projected to see price cuts of around 8.5%. Compact SUVs like the Punch and Brezza, as well as mid-size SUVs like the Creta and MPVs such as the Ertiga, are expected to be cheaper by about 3.5%. Premium SUVs including the XUV700 and MPVs with larger engines like the Innova may see reductions of nearly 6.7%.
Two-wheelers are not left out of the reforms. Most ICE two-wheelers will become more affordable by nearly 7.8%. However, premium motorcycles with engines above 350 cc may see a price hike of up to 6.9%, partly offsetting gains in the mass segment.
Industry analysts believe that the GST revision will strengthen demand for passenger and commercial vehicles alike, as reduced prices are likely to spur buying interest in both urban and rural markets. For Mahindra, which has a wide footprint in SUVs and utility vehicles, the decision to implement the benefits ahead of schedule could give it a competitive edge in boosting sales volumes this festive season.
