Mahindra Passes on Full GST 2.0 Benefits: Prices Reduced by Up to ₹1.56 Lakh

In a major relief for automobile buyers, Mahindra & Mahindra has announced a significant price cut across its product lineup, passing on the full benefits of the new GST 2.0 regime. The company has reduced prices by up to ₹1.56 lakh, making popular SUVs like the Scorpio, XUV700, and Thar more accessible to customers.

This move not only reflects Mahindra’s customer-first approach but also highlights how GST 2.0 reforms are reshaping India’s auto sector by bringing transparency and affordability. Let’s explore what this price cut means, which models benefit the most, and how it impacts buyers.

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What is GST 2.0?

The Goods and Services Tax (GST) 2.0 is a revamped version of India’s indirect taxation system, designed to simplify structures and reduce the overall tax burden on consumers.

Key aspects of GST 2.0 include:

• Lower tax slabs for small cars and SUVs.
• Rationalization of cess on mid-size and large vehicles.
• Transparent pricing for manufacturers and consumers.
• Boost to demand in the automobile sector.

By ensuring a more balanced taxation structure, GST 2.0 has paved the way for lower vehicle costs and increased affordability.

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Mahindra’s Response – Full Benefit Transfer

Unlike some automakers who only partially pass on benefits, Mahindra has confirmed it will transfer the full tax savings to customers. This decision positions Mahindra as a customer-centric brand, ensuring buyers enjoy the complete price reduction without hidden adjustments.

According to company officials, the price reduction across models will range from a few thousand rupees on entry-level vehicles to ₹1.56 lakh on higher-end SUVs.

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Models and Price Reductions

Here’s a closer look at how Mahindra’s most popular vehicles benefit from GST 2.0:

1. Mahindra Scorpio-N

• Price cut: Up to ₹1.20 lakh
• The Scorpio-N, known for its rugged build and strong road presence, becomes more attractive for mid-size SUV buyers.

2. Mahindra XUV700

• Price cut: Up to ₹1.56 lakh
• The flagship SUV, offering advanced safety and premium features, now comes at a more competitive price, challenging rivals like Hyundai Alcazar, Tata Safari, and MG Hector Plus.

3. Mahindra Thar

• Price cut: Up to ₹85,000
• The lifestyle off-roader sees a significant reduction, making it more appealing to adventure enthusiasts and young buyers.

4. Mahindra Bolero & Bolero Neo

• Price cut: Up to ₹70,000
• The Bolero, a trusted name in rural and semi-urban markets, becomes even more affordable for families and fleet buyers.

5. Mahindra XUV300 / XUV400 EV

• Price cut: ₹50,000 – ₹1.20 lakh
• Both compact SUV and electric SUV versions see reductions, with the EV benefiting from added tax relaxation on green mobility.

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Impact on Buyers

The price cut comes as a big win for customers across India:

1. Affordability: Reduced prices lower the entry barrier for premium SUVs.
2. Better Financing Options: Lower ex-showroom prices lead to reduced EMIs and loan amounts.
3. Higher Value for Money: Customers now get more features at lower price points.
4. Boost in EV Adoption: Lower EV costs encourage eco-friendly vehicle purchases.

For example, a buyer considering the XUV700 AX7 variant earlier priced at around ₹24 lakh could now save over ₹1.5 lakh, making it more appealing than rival models.

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Impact on the Auto Industry

The auto industry is expected to see a surge in demand following Mahindra’s price cut:

• Competitive Pressure: Other carmakers may follow suit to stay competitive.
• Sales Growth: Mahindra could see a jump in bookings, especially for the Thar and XUV700.
• Rural Demand Boost: Affordable Bolero and Scorpio variants could drive rural and tier-2 city sales.
• EV Momentum: Reduced pricing of the XUV400 will support India’s electric vehicle mission.

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Comparison with Rivals

Mahindra’s move also puts pressure on competitors:

• Tata Motors: Likely to cut prices for Safari, Harrier, and Nexon.
• Hyundai: May need to adjust Creta and Alcazar pricing.
• MG Motor: Will face heat in the Hector and ZS EV segments.

With Mahindra offering full benefit transfer, it gains a significant edge over rivals that may only partially pass on savings.

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Customer Reactions

Initial reports suggest a positive response from buyers, with dealers witnessing increased footfalls after the announcement. Many customers who were earlier waiting for GST clarity are now rushing to book their SUVs.

For middle-class families, especially those considering mid-range models like the Scorpio-N and Bolero, this reduction is seen as a game-changer.

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Future Outlook

Mahindra’s decision comes at a strategic time when:

• The SUV market in India is booming.
• Customers are price-sensitive due to rising fuel and loan costs.
• GST 2.0 reforms are aimed at boosting consumer demand.

Industry experts predict that this move will accelerate Mahindra’s market share growth and strengthen its dominance in the SUV segment.

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Conclusion

The price cut of up to ₹1.56 lakh across Mahindra’s SUV lineup under GST 2.0 is a landmark move in India’s auto sector. By passing on the entire benefit to customers, Mahindra has reinforced its position as a customer-friendly and market-responsive brand.

For buyers, this is the perfect opportunity to bring home their dream SUV—whether it’s the rugged Thar, the feature-packed XUV700, or the reliable Scorpio—at a much more affordable price.

With GST 2.0 reshaping the industry, Mahindra has set a benchmark for others to follow, ensuring that the real winners are the customers.