Mahindra & Mahindra passes full GST benefits to SUV buyers following GST 2.0 reset

Mahindra & Mahindra Ltd. (M&M), India’s leading SUV manufacturer, today announced that it will extend the full benefit of the recent Goods and Services Tax (GST) cuts to customers across its entire internal combustion engine (ICE) SUV portfolio. This move follows the government’s GST 2.0 announcement at the 56th GST Council meeting on September 3, 2025, chaired by Finance Minister Nirmala Sitharaman. The benefits will be applicable to customers from September 6, 2025, with model-wise reductions ranging from Rs 1.01 lakh to Rs 1.56 lakh, depending on the SUV variant selected.

According to M&M, popular models like the Bolero/Neo will see savings of up to Rs 1.27 lakh, XUV3XO (Diesel) up to Rs 1.56 lakh, and the XUV700 up to Rs 1.43 lakh. Even iconic off-roaders like the THAR 4WD Diesel and Scorpio-N will benefit from reductions of over RS 1 lakh, making premium SUVs more accessible for buyers.

Mahindra SUV GST Benefits (Selected Models, Starting 6 Sept 2025)

Bolero/Neo – Rs 1.27 lakh

XUV3XO (Petrol) – Rs 1.40 lakh

XUV3XO (Diesel) – Rs  1.56 lakh

THAR 2WD (Diesel) – Rs 1.35 lakh

THAR 4WD (Diesel) – Rs 1.01 lakh

Scorpio Classic – Rs 1.01 lakh

Scorpio-N – Rs 1.45 lakh

Thar Roxx – RS 1.33 lakh

XUV700 – Rs 1.43 lakh

Savings may vary depending on variant and location; customers are advised to check with authorised showrooms.

GST boost to auto sector

This move aligns with a broader trend in the Indian automotive sector, as manufacturers pass on the GST benefits directly to consumers. Tata Motors has announced price cuts of up to ₹1.55 lakh on models including the Nexon, Harrier, and Safari, while Maruti Suzuki plans reductions on small cars such as the Alto and Wagon R, with expected savings of ₹40,000–₹67,000.

Tata Motors Model    Price Reduction (₹)
Tiago    75,000
Altroz    1,10,000
Punch    85,000
Nexon    1,55,000
Harrier    1,40,000
Safari    1,45,000

At its 56th meeting, the GST Council announced a major revision in automotive tax rates, reducing GST on small cars, motorcycles up to 350cc, three-wheelers, buses, trucks, and ambulances from 28% to 18%. This reform, seen as a significant push for affordable mobility, is expected to bring down the prices of entry-level cars by nearly 10%. Additionally, a uniform 18% GST rate has been introduced for all auto parts, streamlining the taxation framework.

Small cars—defined as vehicles under 4 meters in length with engine capacities up to 1,200cc for petrol and 1,500cc for diesel—will now attract 18% GST with no additional cess, compared to the previous 28% GST plus 1% cess. Vehicles outside this category, including those over 4 meters in length with engines exceeding 1,200cc for petrol and 1,500cc for diesel, will now fall under a 40% GST slab with no cess, down from the earlier combined rate of 28% GST plus 22% cess.

For two-wheelers, models with engine capacities under 350cc are now taxed at 18% GST, while motorcycles above 350cc will see a higher rate of 40%, making this segment the only one in the vehicle category to become more expensive following the GST revision.

Industry experts say the cuts are likely to stimulate demand across segments, particularly for SUVs and compact cars. Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said, “This reduction in GST is timely. We are passing on the entire benefit to the customer.”

With these measures, consumers can expect immediate savings, making now an opportune time for car purchases. M&M’s proactive move to offer full GST benefits underscores the automaker’s commitment to customer value while boosting competitiveness in India’s growing SUV market.