Indian automaker Mahindra and Mahindra has announced a significant price reduction on its entire lineup of internal combustion engine (ICE) SUVs. This change follows the recent cut in Goods and Services Tax (GST) rates.
As a result, Mahindra cars will now be priced Rs 1.5 lakh lower. The new prices will take effect on September 22, 2025, in conjunction with the implementation of the new GST rate.
The Government of India has reduced the GST on small cars and two-wheelers from 28% to 18%. Previously, all vehicles classified as “small cars” and two-wheelers with engine capacities of up to 350cc were subjected to the higher 28% GST, which made them more costly for budget-conscious consumers.
While small cars and motorcycles will see a decrease in prices, larger vehicles, including mid-size SUVs, premium sedans, and luxury cars, will fall under a new GST slab of 40%. Consequently, these larger vehicles may actually become more expensive.
Now, let’s look at the model-wise discounts.
Mahindra Bolero Neo
In Delhi, the on-road price of the Mahindra Bolero starts at around Rs 11.20 lakh, while the Bolero Neo begins at approximately Rs 10.90 lakh.
These prices include Registration and Title Office (RTO) charges, insurance, and GST, making them strong value-for-money SUVs that offer rugged performance and practicality for families.
Following the new GST regulations, the price of these models will be reduced by Rs 1.27 lakh. As a result, both SUVs will now cost less than Rs 10 lakh.
Mahindra XUV3XO
In Delhi, the Mahindra XUV300 has an on-road price starting at approximately Rs 9.08 lakh for the entry-level petrol model, while the diesel variants begin around Rs 11.50 lakh. The premium variants can go up to Rs 17.84 lakh, which includes RTO fees, insurance, and other additional costs.
Now, with the new GST reduction, this SUV will be available at a discount of Rs 1.40 lakh, bringing the starting price down to less than Rs 8 lakh. The diesel model will also see a discount of Rs 1.56 lakh at the ex-showroom price.
Mahindra Thar
The Mahindra Thar 2WD will now be offered at a starting price that reflects a discount of Rs 1.35 lakh, while the 4WD version will see a reduction of Rs 1.01 lakh after the new GST slab is implemented.
Currently, the on-road price of the Mahindra Thar ranges from approximately Rs 13.6 lakh for the base diesel 2WD variant to around Rs 21 lakh for the top-spec 4WD automatic trims.
Additionally, the Thar Roxx version of this SUV will be available at a discount of Rs 1.33 lakh.
Mahindra Scorpio Classic and Scorpio-N
In Delhi, the Mahindra Scorpio Classic has an on-road price that ranges between Rs 16.2 lakh and Rs 21.1 lakh, depending on the selected variant.
In comparison, the Mahindra Scorpio-N is priced higher, starting at around Rs 16.3 lakh and going up to Rs 29.4 lakh for the top trims.
Following the GST cut, the Scorpio Classic will be available at a discount of Rs 1.01 lakh, while the Scorpio-N will see a reduction of Rs 1.45 lakh.
Mahindra XUV700
Now, turning our attention to the Mahindra XUV700, the on-road price of this SUV starts at Rs 16.3 lakh and goes up to Rs 30.9 lakh. With the recent GST cut, this SUV has also become more affordable. You can now purchase this model with a discount of Rs 1.43 lakh.
