Mahindra Unlikely to Raise Vehicle Prices from January 2026

Mahindra & Mahindra (M&M), India’s leading SUV manufacturer, has indicated that it does not plan to increase vehicle prices from January next year. This goes against the usual industry practice, where most carmakers announce price hikes at the start of each calendar year. 

The company is taking a careful approach and intends to raise prices only if there is a clear rise in raw material costs. 

M&M to Focus on Cost-Based Adjustments

Mahindra has made it clear that any price increase will depend entirely on manufacturing costs. If the prices of essential raw materials stay stable, vehicle prices will remain unchanged. The company wants to avoid unnecessary hikes. 

This approach reflects Mahindra’s effort to maintain transparency and avoid any perception of profiteering during a period of tax adjustments. It also aligns with the company’s broader commitment to remain consumer-friendly in a competitive market.

How Has GST 2.0 Impacted the Auto Sector?

The recent GST reforms have played a major role in reshaping car prices in India. Effective from 22 September, the updated tax structure reduced the GST rate for most small and medium-sized cars from 28% to 18%. Large SUVs and luxury vehicles also saw their effective tax rate drop from around 50% to a flat 40%.

These changes led many car manufacturers to introduce price cuts to pass the benefits on to customers. With a simplified and more balanced tax system, the auto market is now seeing a shift in demand, especially in the mass and mid-range segments.

For electric vehicles, the GST rate continues to remain at a low 5%, giving EV makers a strong reason to expand their product line-ups in a price-sensitive market.

Mahindra Strengthens Its EV Push

As part of its electric vehicle strategy, Mahindra recently launched the XEV 9S, a seven-seater electric SUV, priced at ₹29.45 lakh (ex-showroom). This new model is aimed at buyers looking for a larger, practical EV at a competitive price point. With EV demand rising steadily, the company is working to capture a larger share of this growing segment.

Read more: Top 3 Equity ETFs That Have Outperformed Gold and Silver in 5 Years (2020-25).

Conclusion

Mahindra’s decision to hold off on price hikes reflects both market conditions and the impact of recent GST reforms. By keeping prices stable unless costs rise significantly, the company aims to remain fair to customers while navigating a changing taxation and regulatory environment. At the same time, Mahindra continues to expand its EV portfolio, signalling a strong push toward sustainable mobility.

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