In a bold move, Mahindra & Mahindra has become the first automaker in India to immediately pass on the benefits of the latest GST reforms to its customers. Announced by Chairman Anand Mahindra with the statement “Action. Not just promises,” the changes see prices on popular Mahindra SUVs drop by up to ₹1.56 lakh starting September 6—well ahead of the new GST rates becoming effective on September 22.
New GST Slabs Bring Substantial Savings
The GST Council’s reforms simplified auto taxation and reduced rates:
- Small cars and diesel SUVs (like the Mahindra XUV3XO Diesel) now see GST rates fall from 31% to 18%, unlocking benefits of up to ₹1.56 lakh.
- The XUV3XO Petrol and Thar 2WD Diesel follow, with reductions of ₹1.4 lakh and ₹1.35 lakh, respectively.
- Bolero/Neo and Scorpio Classic models get ₹1.27 lakh and ₹1.01 lakh off.
- Larger SUVs, previously taxed at up to 48%, now fall under a 40% GST slab. This means discounts of up to ₹1.45 lakh for Scorpio-N, ₹1.33 lakh for Thar Roxx, and ₹1.43 lakh for XUV700.
Mahindra’s rapid action positions it ahead of competitors, some of whom (like Tata Motors and Renault) have also announced price drops to align with GST reform but will implement the cuts closer to the September 22nd start date.
Major GST Reforms: What Changes for Car Buyers?
At the 56th GST Council meeting, the government moved to a simpler two-slab system—small cars now attract an 18% GST rate (from 28%), and larger vehicles, including SUVs, are under a new 40% slab (from up to 50%, with cess removed). This results in effective price drops for entry-level cars and many popular SUVs.
- Petrol, LPG, CNG cars below 1,200cc (under 4 meters) and diesel up to 1,500cc now at 18% GST.
- Electric vehicles remain at 5% GST.
- Commercial vehicles and components also see reductions, enhancing affordability ahead of the festive season.
The reforms are set to drive demand and provide relief for both buyers and manufacturers, ending years of confusing tax slabs and boosting India’s personal mobility ambitions.
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Why Mahindra is Offering Benefits Prior To Government?
Mahindra reduced prices ahead of the official GST rate cut (Sept 22) mainly for strategic reasons:
- First-Mover Advantage – By acting before competitors like Tata, Hyundai, and Maruti, Mahindra positions itself as customer-first and grabs attention.
- Boost Festive Season Sales – September kicks off the pre-Diwali buying period; slashing prices early helps them capture demand before rival festive offers launch.
- Brand Messaging – Anand Mahindra’s post, “Action. Not just promises,” signals that the company is proactive in passing benefits directly to customers rather than waiting for deadlines.
So, it’s both a marketing move and a customer trust strategy—they’re using the GST cut as a sales trigger before anyone else.
Market Impact and Competitive Moves
Mahindra’s announcement—publicly reinforced by Anand Mahindra’s social media—strategically brings price relief weeks ahead of the deadline, creating goodwill and likely stimulating pre-festive demand.
This transparent move sets a competitive benchmark not only for traditional players but for the entire auto industry. Other brands (Tata, Renault, Toyota) have signaled price reductions in response, but Mahindra’s “now, not later” approach sets it apart.
Final Thoughts
In a market reeling from months of stagnant growth, Mahindra’s rapid price cuts following GST rationalization offer direct and meaningful relief to car buyers. With simpler tax slabs, reduced prices, and renewed momentum, India’s automobile sector is poised for a festive season boost and long-term expansion. As Anand Mahindra put it: this is “action, not just promises”—a phrase that may shape auto industry moves for months to come.
