Mahindra & Mahindra Ltd. announced on September 6, 2025, that it will pass complete GST benefits to customers across its entire Internal Combustion Engine (ICE) SUV portfolio, following the GST 2.0 framework announced at the 56th GST Council meeting on September 3, 2025. The revised pricing structure offers customers savings of up to ₹1.56 lakh depending on the model and variant selected.
The decision comes after Finance Minister Nirmala Sitharaman headed the GST Council meeting that introduced the updated tax structure. India's leading SUV manufacturer has committed to transparent implementation of the new rates across all dealerships and digital platforms with immediate effect.
The GST benefits vary significantly across Mahindra's SUV lineup based on the new tax slabs. Models previously taxed at 31% GST and cess, including the Bolero/Neo, XUV3XO Diesel, and THAR 2WD Diesel, now fall under the reduced 18% category. The XUV3XO Petrol variant, which carried a 29% tax rate, also benefits from the 18% slab.
Higher-end models such as the THAR 4WD Diesel, Scorpio Classic, Scorpio-N, Thar Roxx, and XUV700, previously taxed at 48%, now attract a 40% GST rate. The XUV3XO Diesel variant receives the maximum benefit of ₹1.56 lakh, while the Scorpio-N customers can save up to ₹1.45 lakh.
Entry-level models show substantial percentage reductions in taxation. The Bolero/Neo and XUV3XO variants demonstrate the most significant tax relief, with reductions from 31% to 18%. The THAR 2WD Diesel variant offers customers savings of ₹1.35 lakh under the new structure.
Premium SUV models, while receiving smaller percentage reductions from 48% to 40%, still provide considerable absolute savings. The XUV700, positioned as Mahindra's flagship SUV, offers benefits up to ₹1.43 lakh, while the newly launched Thar Roxx provides savings of ₹1.33 lakh.
The GST 2.0 framework represents a significant policy shift affecting the automotive sector's pricing structure. Mahindra's immediate implementation of the benefits demonstrates the company's customer-centric approach in a competitive SUV market where pricing plays a crucial role in purchase decisions.