For anyone planning to buy a new SUV, the most important question right now is: "How much money can I save after the new GST reforms?" Mahindra & Mahindra has answered with a bang, announcing substantial price cuts of up to ₹1.56 lakh across its entire range of popular SUVs. In a strategic move, the company has implemented these new, lower prices from September 6, 2025, well ahead of the official deadline, to give buyers an early advantage for the festive season. This guide provides a complete breakdown of the new prices and explains what this means for you.
Table of Contents
- How Much Can You Save on a New Mahindra SUV? The Full Price Cut List
- Why Are Mahindra SUVs So Much Cheaper Now? The GST Effect
- Why Did Mahindra Announce Price Cuts Before the Deadline?
- How Has This News Affected Mahindra's Stock Price?
- Frequently Asked Questions (FAQs)
Mahindra is passing on the full benefits of the recent GST overhaul, resulting in significant savings for customers. Here is a detailed look at the maximum price reduction you can get on Mahindra's most sought-after models:
| Model |
Maximum Price Reduction |
| XUV3XO Diesel |
₹1,56,000 |
| Scorpio-N |
₹1,45,000 |
| XUV700 |
₹1,43,000 |
| XUV3XO Petrol |
₹1,40,000 |
| Thar 2WD Diesel |
₹1,35,000 |
| Bolero & Bolero Neo |
₹1,27,000 |
| Scorpio Classic |
₹1,01,000 |
| Thar 4WD Diesel |
₹1,01,000 |
To evaluate how Mahindra's stock has responded to its financial performance, check the latest Mahindra share price, charts, and key valuation indicators.
These price reductions are a direct result of the government's GST 2.0 reforms. The new tax structure has simplified the slabs for automobiles, providing a major cost benefit.
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The GST on small vehicles (under 4,000 mm) has been slashed from 28% to 18%.
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The tax on larger SUVs has been revised to a flat 40%, which is a significant reduction from the previous rate of nearly 50% (which included various cesses).
By passing this entire benefit on, Mahindra is making its dominant SUV portfolio even more attractive.
To understand whether Mahindra’s early price cuts are being mirrored across the industry, you can track Nifty Auto, which reflects how leading auto stocks are absorbing the GST reforms.
Mahindra has strategically implemented these price cuts from September 6, 2025, rather than waiting for the official September 22 deadline. This proactive move is designed to:
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Capitalise on Early Festive Demand: It allows the company to attract buyers and gain momentum in the crucial period leading up to the Navratri and Diwali festivals.
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Gain a Competitive Edge: By acting first, Mahindra puts pressure on its rivals to follow suit, establishing itself as a customer-centric brand.
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Manage Inventory: The company had consciously reduced its wholesale billing to dealers in August in anticipation of this change, ensuring that customers get the full price benefit on fresh stock.
Nalinikanth Gollagunta, CEO of M&M's Automotive Division, confirmed that the company expects the GST rationalisation to be a "significant demand driver" through the festive season.
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There’s a helpful video by Vlogger villain gupta that presents the full updated price list of Mahindra cars after the GST 2.0 cut — worth watching if you’re tracking discounts.
The market has reacted with strong optimism to both the GST reforms and Mahindra's swift action.
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Stock Performance: On September 8, 2025, Mahindra & Mahindra's stock surged to a 52-week high of ₹3,619.80, closing the day even higher at ₹3,701.40. The stock has delivered an impressive return of approximately 31.4% over the last year.
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Strong Financial Health: This strategic move is backed by robust financials. For the fiscal year ending March 2025, M&M reported a net profit of ₹12,535.75 crore. The company's strong performance in the SUV segment provides a solid foundation to capitalise on the increased demand.
This combination of a proactive strategy, positive market sentiment, and strong financial health places Mahindra in an excellent position to increase its market share.
Want to see how another major automaker has adjusted its strategy? Hyundai GST Benefits reveal how sweeping price reductions of up to ₹2.4 lakh are reshaping affordability in the passenger car market.
Q1: Which Mahindra SUV has received the biggest price cut?
A1: The Mahindra XUV3XO Diesel has received the largest price reduction, with its price being slashed by up to ₹1.56 lakh.
Q2: When are the new, lower prices for Mahindra SUVs effective from?
A2: The new prices are effective from September 6, 2025, well ahead of the government's official September 22 deadline.
Q3: How much cheaper is the popular Mahindra Thar now?
A3: The Mahindra Thar 2WD Diesel sees a price reduction of up to ₹1.35 lakh, while the 4WD Diesel model is cheaper by up to ₹1.01 lakh.
Q4: Are these price cuts a limited-time festive offer?
A4: No, these are permanent price reductions resulting from the government's overhaul of the GST tax structure for automobiles.
Q5: Why did M&M's stock price hit a 52-week high?
A5: Investors are highly optimistic that these significant price cuts will lead to a surge in sales volumes and revenue for the company, especially during the upcoming festive season. This positive business outlook drove the stock price to a new high.