Mahindra Slashes SUV Prices After GST 2.0 Reforms – Big Boost for Customers and Investors

Mahindra’s Big Move After GST 2.0

Mahindra & Mahindra, one of India’s leading automobile manufacturers, has taken a bold step in response to the recent GST 2.0 reforms announced by the government. From September 6, 2025, Mahindra has officially reduced the prices of its most popular SUVs, offering savings of up to ₹1.56 lakh for customers. This decision has not only excited SUV enthusiasts but has also given a strong push to Mahindra’s stock, making it one of the biggest winners of the GST overhaul.

Models like the XUV700, Thar, Scorpio-N, Scorpio Classic, and Bolero Neo have become more affordable, ensuring that Mahindra continues to dominate the Indian SUV market.

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How Much Do Buyers Save?

The price cuts vary depending on the model and variant, but customers are expected to benefit massively:

• XUV700: Savings up to ₹1.56 lakh
• Thar: Reduced by around ₹1.2 lakh on select variants
• Scorpio-N and Scorpio Classic: Price drops between ₹1.1 lakh – ₹1.4 lakh
• Bolero & Bolero Neo: Cheaper by nearly ₹1 lakh

For families and adventure seekers alike, this means owning a premium SUV has become significantly easier.

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Anand Mahindra’s Reaction

Anand Mahindra, the Chairman of Mahindra Group, took to social media to express his satisfaction with the move. He posted a short but powerful message:

“Action. Not just promises.”

This reflects Mahindra’s long-standing commitment to its customers — ensuring that the benefits of government policies are directly passed on without delay.

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Investor and Market Impact

The GST 2.0 reforms turned out to be a golden opportunity for Mahindra. While many automakers welcomed the changes, Mahindra stood out as the biggest auto-sector beneficiary.

On September 5, 2025, Mahindra’s stock hit a 52-week high, closing at ₹3,561.55, well above its earlier record of ₹3,539.25. The stock gained nearly 9% in just a few days, reflecting investor confidence in the brand’s strategic decision-making.

Experts believe Mahindra’s strong presence in both the SUV and tractor segments places it in an advantageous position to benefit from India’s evolving tax policies and growing consumer demand.

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Sales Trends: A Temporary Dip Before the Boom

Interestingly, Mahindra reported a 9% dip in SUV dispatches to dealers in August 2025, marking the first such decline in more than three years. However, analysts explain this slowdown as a strategic move — dealers were holding back inventory in anticipation of the GST price cuts.

Now that the revised prices are official, demand is expected to surge as buyers rush to take advantage of lower costs. On a year-to-date basis, Mahindra’s SUV sales remain up 15%, proving that the long-term growth story remains strong.

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Why Mahindra Leads the SUV Game

Several reasons explain Mahindra’s continued dominance in the Indian SUV market:

1. Diverse Portfolio: From rugged models like the Thar to family-focused SUVs like the XUV700, Mahindra offers options for every type of buyer.
2. Trust Factor: The brand has built a reputation for reliable performance, strong after-sales service, and customer loyalty.
3. Innovation: Mahindra is steadily moving towards electrification, with models like the XUV400 EV and future BE series SUVs lined up.
4. Value for Money: The recent price cut reinforces Mahindra’s ability to offer premium vehicles at competitive prices.

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What This Means for Customers

For Indian buyers, the GST-linked price drop is nothing short of a festival offer:

• Families looking for premium comfort can now afford the XUV700 at a much lower cost.
• Off-road enthusiasts and youth get an even more attractive Thar, a lifestyle SUV that has a cult following.
• Budget-conscious customers can explore the Bolero and Neo series, which continue to dominate rural and semi-urban markets.

In short, Mahindra has ensured that there is something for everyone at a better price.

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The Road Ahead: EVs and Global Ambitions

While ICE (internal combustion engine) SUVs remain Mahindra’s bread and butter, the company is actively investing in electric mobility. Future models such as the XUV e9 and BE 6 are expected to strengthen Mahindra’s EV portfolio.

Moreover, Mahindra is eyeing global markets, with exports expected to grow steadily in Africa, South America, and the Middle East. By combining affordability with innovation, Mahindra is positioning itself as a global SUV powerhouse.