Mahindra Reduces SUV Prices Amid GST Policy Changes, XUV 3XO To Receive Highest Reduction Up To Rs. 1.56 Lakh
Mahindra has announced passing on the full GST benefits to its customers. The announcement follows GST 2.0 at the 56th GST Council meeting on September 3, 2025. Finance Minister Nirmala Sitharaman chaired the meeting, which outlined the new tax reforms.
Mahindra will make the benefits available across its ICE SUV portfolio starting from September 6, 2025. The company confirmed that all eligible models will reflect revised prices. This move is expected to make Mahindra’s SUVs more accessible to buyers.
Pricing Changes
The Mahindra XUV 3XO diesel variant has received the highest reduction under GST 2.0. The prices have dropped by up to Rs 1.56 lakh. This change makes the compact SUV more competitive in its segment.
The Mahindra Thar has also become more affordable under the new structure. The 2WD trims have received reductions of up to Rs 1.35 lakh. Meanwhile, the 4WD trims have become cheaper by up to Rs 1.01 lakh.
The Mahindra Scorpio N is another major beneficiary of GST 2.0. The SUV previously attracted a GST and cess of 48%. It now benefits from a lower 40% rate, making it cheaper by up to Rs 1.45 lakh.
| Models | Current (GST + CESS) |
New GST |
Price Difference (Up to) |
| Bolero/Neo | 31% | 18% | Rs. 1.27 lakh |
| XUV 3XO (Petrol) | 29% | 18% | Rs. 1.40 lakh |
| XUV 3XO (Diesel) | 31% | 18% | Rs. 1.56 lakh |
| Thar 2WD (Diesel) | 31% | 18% | Rs. 1.35 lakh |
| Thar 4WD (Diesel) | 48% | 40% | Rs. 1.01 lakh |
| Scorpio Classic | 48% | 40% | Rs. 1.01 lakh |
| Scorpio N | 48% | 40% | Rs. 1.45 lakh |
| Thar Roxx | 48% | 40% | Rs. 1.33 lakh |
| XUV700 | 48% | 40% | Rs. 1.43 lakh |
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