Mahindra Slashes SUV Prices After GST Rate Cut: Check Full Model-Wise List

The Centre’s sweeping overhaul of the Goods and Services Tax (GST) regime is already showing its impact on the ground. Days after Finance Minister Nirmala Sitharaman announced the Next-Gen GST framework at the 56th GST Council meeting, automaker Mahindra & Mahindra has reduced prices across its internal combustion SUV lineup, passing the full tax benefit to customers.

A Win for Customers, Industry, and the Economy

The reduction from the current GST+CESS of 31–48% GST rates down new GST to 18–40% makes Mahindra SUVs considerably more affordable. According to industry experts, the price correction is expected to boost demand across urban and rural markets, strengthening India’s automobile sector at a time when consumption is key to sustaining economic momentum.

The announcement ties into the government’s larger effort to simplify the tax structure by moving to two primary GST slabs, 5% and 18%, while continuing the 5% GST rate on electric vehicles (EVs) to support clean mobility.

Mahindra Responds with Price Cuts

Mahindra & Mahindra on Saturday confirmed that it would extend the entire GST benefit to buyers. The revised prices came into effect on September 6, 2025, and are being updated across dealerships and online platforms.

Here is the model-wise impact of the tax cut on Mahindra SUVs:

The highest relief is on the XUV3XO Diesel, which now costs up to ₹1.56 lakh less than before.

What This Means for SUV Buyers

For Mahindra’s popular internal combustion engine (ICE) SUV portfolio, the revised tax rates translate into direct price reductions of up to ₹1.56 lakh, depending on the model and variant. The updated prices took effect on September 6, 2025, across dealerships and online platforms.

Anand Mahindra’s Call for More Reforms

Mahindra Group Chairman Anand Mahindra welcomed the government’s move but stressed the importance of sustained momentum in reforms. “We have now joined the battle… More and faster reforms are the surest way to unleash consumption and investment. Those, in turn, will expand the economy and amplify India’s voice in the world. But let’s remember the famous exhortation of Swami Vivekananda: ‘Arise, awake, and stop not till the goal is reached.’ So, more reforms, please…” he posted on X.

We have now joined the battle…

More and faster reforms are the surest way to unleash consumption and investment.
Those, in turn, will expand the economy and amplify India’s voice in the world.

But let’s remember the famous exhortation of Swami Vivekananda:
“Arise, awake, and… https://t.co/rDoRtjsCw1

— anand mahindra (@anandmahindra) September 3, 2025

Broader Industry Response

Other business leaders also backed the government’s decision. RP-Sanjiv Goenka Group Chairman Sanjiv Goenka praised the reforms in a social media post, saying:
“Welcoming the #NextGenGST reforms that place citizens first. By making essentials affordable, supporting healthcare and education, and empowering agriculture, these reforms also provide fresh momentum to the economy. A reflection of Hon’ble PM Shri @narendramodi’s leadership and FM @nsitharaman’s strategy for inclusive growth.”

Welcoming the #NextGenGST reforms that place citizens first. By making essentials affordable, supporting healthcare and education, and empowering agriculture, these reforms also provide fresh momentum to the economy. A reflection of Hon'ble PM Shri @narendramodi's leadership and… pic.twitter.com/KU6vZGlStO

— Dr. Sanjiv Goenka (@DrSanjivGoenka) September 3, 2025

Executive Director and CEO of Auto and Farm Sector at Mahindra & Mahindra (M&M), Rajesh Jejurikar, welcomed the GST rationalisation, calling it a boost to affordability and growth. He also

highlighted the government’s decision to retain the 5% GST rate on electric vehicles as crucial for advancing clean mobility.

"We applaud the Government for this landmark GST rationalisation, which will have a far-reaching positive impact across the automotive and farming sectors. The move makes tractors and farm machinery more affordable for farmers, reduces costs for commercial vehicles and improves accessibility for personal mobility through rationalisation of rates across all SUVs. Together, these measures are expected to stimulate demand and drive inclusive growth across the entire ecosystem. We also appreciate the continuation of the 5% GST rate on EVs, which is a critical enabler of India's clean mobility vision. This measure will further accelerate the adoption of electric vehicles and reinforce India's leadership in sustainable, green transportation," Jejurikar said.

Group CEO and MD of Mahindra Group, Anish Shah, described the reforms as transformative and aligned with Prime Minister Narendra Modi’s vision for a citizen-centric Bharat. He emphasised their impact on essentials and their role in strengthening key sectors.

"The next-generation GST reforms announced today mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system. By moving to a streamlined two-rate structure and focusing on essentials that touch the lives of every citizen- from food, health, and insurance to agriculture and small businesses -the Government has reaffirmed its commitment to Ease of Living and Ease of Doing Business. The rationalisation measures will not only provide immediate relief to households but also strengthen key sectors such as automobiles, agriculture, healthcare, renewable energy, and MSMEs - all of which are vital to job creation and sustainable growth. The correction of long-pending inverted duty structures in critical industries is welcome," Shah stated.

Corporate voices beyond the auto sector, including RP-Sanjiv Goenka Group Chairman Sanjiv Goenka, also endorsed the changes, calling the move “citizen-first” and praising its focus on essentials like food, healthcare, and agriculture.

What It Means for Consumers

For SUV buyers, the immediate takeaway is lower on-road prices starting this week. For the broader economy, the reform is expected to boost demand, reduce compliance complexities, and strengthen India’s push towards a simplified tax system.