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Mahindra & Mahindra, Tata Motors, and Renault India announce SUV and car price cuts up to Rs 1.56 lakh after the GST Council reduces vehicle tax rates.
Price of Scorpio-N is reduced by Rs 1.45 lakh, Thar Roxx by Rs 1.33 lakh and XUV700 by Rs 1.43 lakh.
In order to pass on the GST rate cut, Mahindra & Mahindra on Saturday announced a price reduction of up to Rs 1.56 lakh on sports utility vehicles (SUVs) like Scorpio, XUV700, Thar and Bolero. The price cut, effective from September 6, comes after the government earlier this week reduced the effective GST rates on vehicles.
Tata Motors and Renault India have also cut vehicle prices owing to GST rate rationalisation.
The GST Council approved tax cuts earlier this week. Though new GST rates will be effective from September 22, 2025, the first day of Navratri; Mahindra has announced an immediate price cut, effective today, September 22.
Mahindra Cars’ Latest Prices
After the GST rate cuts, Mahindra’s SUV line-up has become more affordable, with buyers set to save between Rs 1.01 lakh and Rs 1.56 lakh depending on the model. Mahindra & Mahindra manufactures cars only in the SUV segment.
- XUV3XO (Diesel): Tax incidence reduced from 31% to 18% — benefit of up to Rs 1.56 lakh.
- Scorpio-N: From 48% (GST + Cess) to 40% — benefit of up to Rs 1.45 lakh.
- XUV700: From 48% to 40% — benefit of up to Rs 1.43 lakh.
- XUV3XO (Petrol): From 29% to 18% — benefit of up to Rs 1.40 lakh.
- Thar 2WD (Diesel): From 31% to 18% — benefit of up to Rs 1.35 lakh.
- Thar Roxx: From 48% to 40% — benefit of up to Rs 1.33 lakh.
- Bolero / Bolero Neo: From 31% to 18% — benefit of up to Rs 1.27 lakh.
- Scorpio Classic: From 48% to 40% — benefit of up to Rs 1.01 lakh.
- Thar 4WD (Diesel): From 48% to 40% — benefit of up to Rs 1.01 lakh.
GST Council Rate Cut On Cars
Petrol, CNG and LPG cars with engine capacity up to 1200cc and length up to 4000 mm will now attract 18% GST, lower from the earlier 28%. Diesel cars with engine capacity up to 1500cc and length up to 4000 mm also get the lower 18% GST rate.
Cars with engine capacity above 1200cc (petrol/CNG/LPG) or above 1500cc (diesel) or length more than 4000 mm will now attract a 40% GST, as compared with about 50% (28% GST + 17%-22% compensation cess) earlier.
Tata Motors, Renault Price Cuts
Tata Motors on Friday said it will cut passenger vehicle prices ranging between Rs 65,000 and Rs 1.45 lakh, effective September 22.
The Mumbai-based auto major said that its small car Tiago will see a price drop of Rs 75,000, Tigor Rs 80,000, and Altroz Rs 1.10 lakh. Similarly, the price of compact SUV Punch will come down by Rs 85,000 and that of Nexon by Rs 1.55 lakh. Mid-sized model Curvv would also see a price cut of Rs 65,000, Tata Motors said in a statement. Prices of company’s premium SUVs – Harrier and Safari, wll see a price reduction of 1.4 lakh and Rs 1.45 lakh respectively, it added.
Renault India on Saturday said it will reduce prices of its vehicles by up to Rs 96,395 to pass on full benefit of the recent GST rate cut to buyers. Price of entry level Kwid will come down by up to Rs 55,095, Triber by Rs 80,195 and Kiger by up to Rs 96,395, the automaker said.
(With PTI inputs)
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
September 06, 2025, 14:16 IST
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