
Mahindra & Mahindra has taken a significant step for car buyers in India by becoming the first passenger vehicle brand to roll out full GST benefits effective September 6, 2025. This move comes after the GST revisions announced for the automobile sector, leading to substantial price reductions across several popular Mahindra models.
GST Rate Reduction: Big Relief for Car Buyers
The latest update sees a sharp reduction in GST + Cess on multiple vehicles. For instance:
- Bolero/Neo, XUV3XO (Diesel & Petrol), and Thar 2WD Diesel models now fall under the 18% GST bracket (down from 29–31%).
- Premium and larger models like Thar 4WD, Scorpio Classic, Scorpio-N, Thar Roxx, and XUV700 will now attract 40% GST instead of 48%.
Customer Savings: Up to ₹1.56 Lakh
Mahindra has announced that customers can avail benefits of up to ₹1.56 lakh depending on the model. The XUV3XO Diesel tops the list with the highest savings, while popular SUVs such as the Scorpio-N and XUV700 also bring over ₹1.40 lakh in GST savings.
Model-Wise GST Benefits (Up to in Lakhs)

- Bolero/Neo – ₹1.27 Lakh
- XUV3XO (Petrol) – ₹1.40 Lakh
- XUV3XO (Diesel) – ₹1.56 Lakh
- Thar 2WD (Diesel) – ₹1.35 Lakh
- Thar 4WD (Diesel) – ₹1.01 Lakh
- Scorpio Classic – ₹1.01 Lakh
- Scorpio-N – ₹1.45 Lakh
- Thar Roxx – ₹1.33 Lakh
- XUV700 – ₹1.43 Lakh
Industry Impact
By taking the lead in passing on the revised GST benefits directly to customers, Mahindra is expected to trigger competitive responses from other automakers. Industry experts believe this move could boost SUV sales ahead of the festive season, making Mahindra’s lineup even more attractive in the highly competitive Indian automotive market.
Conclusion
With GST reductions translating into direct price cuts, Mahindra has set a strong precedent in the Indian passenger vehicle industry. Customers looking to buy an SUV now have more reasons to consider Mahindra, especially with savings crossing the ₹1.5 lakh mark on select models.
Disclaimer: This article is based on publicly available information and market updates. Prices and benefits may vary across dealerships and states.