Car buyers in India always find reason to celebrate! Mahindra cars to get cheaper, with prices reduced by up to ₹1.56 lakh following the recent Goods and Services Tax (GST) revision. After Tata Motors’ big announcement of price reduction up to ₹1.55 lakh, Mahindra has now joined the race, encourage customers to drive home their favorite SUVs at more affordable prices.
This move comes just ahead of the festive season, when car sales traditionally see a hike. In this article, we’ll cover why Mahindra announced these price cuts, which models are affected, and how much buyers stand to save.
Mahindra cars to get cheaper- Announced Price Cuts After Tata Motors
After the recent price reduction of Tata Motors, Mahindra also join the lineup to stay connected with every future customer. GST council informed automakers to reduce tax and make every vehicle affordable from 22nd September, the first day of Navratri. Mahindra, a strong rival in the SUV segment, responded quickly to maintain its market and release the benefit effective from 6th September.
By aligning with Tata’s strategy, Mahindra ensures that it remains competitive in India’s growing automotive market.
How Much Can Buyers Save on Mahindra Cars?
To qualify for the 18% GST benefit, the car length must be 4 meters or less. The benefit will be applicable to 1.2L or below petrol engines and 1.5L or below diesel engines. Beyond 4 meters, above 1.2L petrol engine or above 1.5L diesel engine, it will be considered for the 40% GST benefit.
Two-wheelers under 350cc now fall under 18% GST, while bikes beyond 350cc face 40% GST. Auto parts and servicing costs have been considered at a flat 18% GST rate.
The GST revision has significantly lowered taxes on different Mahindra models, resulting in substantial price reductions.
Mahindra Cars GST Impact & Benefits (Effective from 6th Sept 2025)
| Bolero/Neo | 31% | 18% | ₹1.27 Lakh |
| XUV3XO (Petrol) | 29% | 18% | ₹1.40 Lakh |
| XUV3XO (Diesel) | 31% | 18% | ₹1.56 Lakh |
| THAR 2WD (Diesel) | 31% | 18% | ₹1.35 Lakh |
| THAR 4WD (Diesel) | 48% | 40% | ₹1.01 Lakh |
| Scorpio Classic | 48% | 40% | ₹1.01 Lakh |
| Scorpio-N | 48% | 40% | ₹1.45 Lakh |
| Thar Roxx | 48% | 40% | ₹1.33 Lakh |
| XUV700 | 48% | 40% | ₹1.43 Lakh |
The offer mentioned is for a particular model and variant. Benefits will vary depending on the model and variant selected. effected from 6th Sept.
GST Impact on Car Prices in India
Benefits for Buyers
Without a huge GST + Cess, customer can increase their purchase power as the EMI or On-Road price will reduce significantly. Indians wish to buy cars on the festive season, and this move will help every future buyer to dream with their future car.
Competitive Market Response
The automotive market operators are always ready for a tight fight with their own strategy. Tata Motors set the trend with its price cuts, and with immediate effect, Mahindra followed suit to protect its SUV dominance. While other automakers like Hyundai, Maruti Suzuki, and Kia may also reduce prices soon.
The good news is that, domino effect ensures- customers are the ultimate winners.
What This Means for Car Buyers in 2025
The Indian automobile market is evolving rapidly. With this GST Restructure movement, automaker can reduce manufacturing cost as every parts also reduced GST to 18% flat. Now buyers can expect more affordable SUV options in the under 15 lakh segment. They will get a chance to buy premium models like the Scorpio-N or XUV700 at lower ownership costs with strong festive discounts.
For those considering a car purchase in 2025, this is the right time to book a Mahindra.
Read more: Top Tata Cars Under 10 Lakh On-Road Price in India (2025)
Tata Cars to Get Cheaper: Price Cut Up to ₹1.55 Lakh After GST Revision
Conclusion – Should You Buy a Mahindra Car Now?
Mahindra’s decision to slash prices by up to ₹1.56 lakh immediate after Tata Motors’ announcement is a golden opportunity for those Indian buyers who planned to get their Mahindra dream cars. Whether you’ve been eyeing the rugged Thar, the powerful XUV700, or the dependable Bolero, now is the perfect time to make your move.
FAQ Section
Q1. Why did Mahindra reduce car prices in 2025?
A1. Mahindra reduced prices after the GST revision and in response to Tata Motors’ similar move, making cars more affordable for buyers.
Q2. Which Mahindra models have the biggest price cuts?
A2. SUVs like the Mahindra XUV700, Scorpio-N, and Thar have seen the highest reductions, up to ₹1.56 lakh.
Q3. Will other brands also reduce prices after the GST revision?
A3. Yes, industry experts expect Hyundai, Maruti, and Kia to announce similar price cuts soon.
Q4. Is now a good time to buy a Mahindra car?
A4. Absolutely! With GST-driven reductions and festive discounts, 2025 offers one of the best times to purchase a Mahindra.