Mahindra Cuts Car Prices by Up to ₹1.56 Lakh Post-GST Reform; XUV700, Thar, Scorpio Benefit

Mahindra & Mahindra has announced massive price reductions across its passenger vehicle lineup, slicing up to ₹1.56 lakh off certain models like XUV700, Thar, and Scorpio. This proactive move comes ahead of the revised GST rates officially taking effect on September 22, 2025, offering immediate benefits to buyers.

New GST Impact: Massive Price Drop on Mahindra Vehicles

Following the 56th GST Council meeting resolution on September 3, 2025, which revised the tax structure for internal combustion engine vehicles, Mahindra swiftly implemented the new pricing from September 6, 2025. Despite the official rollout scheduled for September 22, 2025, Mahindra moved early, giving consumers up to ₹1.56 lakh in price benefits. 

Popular models such as the XUV700, Thar, and Scorpio-N have seen significant reductions ranging between ₹1.01 lakh to ₹1.56 lakh. The Bolero and Neo lineup now costs ₹1.27 lakh less, while the XUV3XO petrol and diesel versions are more affordable by ₹1.4 lakh and ₹1.56 lakh, respectively.

Segment-Wise Benefits and GST Rationalisation

Larger SUVs like Scorpio-N, Thar Roxx, and XUV700 previously fell under a 48% GST rate slab. With reform, they now attract only 40% tax, directly translating to cheaper ex-showroom prices. For instance, Thar 2WD and 4WD diesel models now cost ₹1.35 lakh and ₹1.01 lakh less. Meanwhile, the Scorpio Classic gets a ₹1.01 lakh reduction, and the Thar Roxx offers savings up to ₹1.33 lakh.

Read More: GST Reform: Bikes up to 350cc to Attract 18% GST, Big Bikes Above 350cc to Face 40% GST!

Wider Market Effects and Government Support

This price restructuring may boost ICE vehicle sales in the coming months. Even entry-level models like Wagon R, Swift, and Dzire could become roughly 8.5% cheaper. Compact SUVs, including Brezza and Punch, may fall by 3.5% to 6.7%, depending on category. Two-wheelers also benefit from up to 7.8% price drops, though premium segments may see slight hikes.

Mahindra & Mahindra Share Price Performance

On September 9, 2025, Mahindra & Mahindra share price opened at ₹3,702.20 on NSE, above the previous close of ₹3,561.30. During the day, it surged to ₹3,723.80 and dipped to ₹3,673.10. The stock is trading at ₹3,701.90 as of 1:50 PM. The stock registered a significant gain of 3.95%.

Over the past week, it has moved up by 12.66%, over the past month, it has moved up by 16.19%, and over the past 3 months, it has moved up by 20.87%.

Conclusion

Mahindra’s timely action in reducing prices on its vehicle lineup ahead of the GST implementation highlights a customer-centric approach. With substantial cuts across models like XUV700, Thar, and Scorpio, the proactive move sets a strong precedent in leveraging tax reforms for market competitiveness.

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