India's 2025 GST overhaul for automobiles is a practical, buyer-focused change that directly lowers the on-road cost of many new cars and strengthens the case for electric vehicles. If you are considering a new Mahindra — whether a compact city model, a family SUV, or an EV — the new tax rules create real, measurable savings you can act on immediately. Popular Mahindra has updated showroom pricing to reflect these changes. This article explains exactly what changed, how much you can expect to save, which Mahindra models benefit most, and what practical next steps you should take to secure the new prices.
What changed
The GST Council simplified vehicle taxation into clearer slabs and reduced the effective tax on many categories. Key points:
- Small cars (petrol ≤1,200cc / diesel ≤1,500cc and length ≤4m): GST reduced from 28% to 18%.
- Large cars / premium SUVs: Flat 40% GST (replacing the layered cess structure).
- Electric vehicles (EVs): Remain at 5% GST, preserving the EV tax advantage.
- Parts, accessories and routine repairs: Standardised to 18%, lowering ownership costs.
These slabs came into effect in September 2025; manufacturers including Mahindra updated dealer pricing as soon as the rules were confirmed, and showrooms are reflecting these prices now.
Price effects
Entry-level hatchbacks and compact SUVs can be roughly 8–9% cheaper on-road after the reform. Midsize and premium SUVs see smaller percentage reductions but meaningful absolute savings (often several tens of thousands to over a lakh on higher trims). EVs keep a distinct tax advantage because of the 5% GST slab, strengthening their lifetime value case when combined with lower running costs and available state incentives.
Buyer benefits
First, buyers see immediate reductions in on-road cost and better financing outcomes. By moving many small, high-volume models from 28%+cess to 18%, the tax burden on the ex-showroom price drops materially. This gives buyers two clear advantages: lower overall purchase price, and the ability to upgrade to a better-equipped trim or engine while keeping EMIs manageable. For financed purchases, the lower principal reduces monthly instalments and total interest paid over the loan term.
Second, the reform shifts the EV versus ICE economics in favour of electric ownership while making ICE models more attractively priced in absolute terms. With EVs still at 5% GST, combining the tax benefit with lower running costs and potential state subsidies often makes EVs more cost-effective over the car's life. On the ICE side, applying a flat 40% GST to larger SUVs removes hidden cess layers and reduces effective taxation on feature-rich models — meaning buyers get more value in higher-spec variants. Manufacturer-declared examples show price reductions across the Mahindra range that materially alter negotiation leverage and the value delivered at every budget level.
Mahindra model impacts
Mahindra announced pricing adjustments across its line-up and Popular Mahindra’s showrooms reflect these changes in on-road quotes.
- Bolero / Neo: ~₹1.27 lakh reduction on selected variants.
- XUV 3XO: ~₹1.40 lakh off (petrol) and up to ~₹1.56 lakh off (diesel) on certain trims (https://popularmahindra.com/suv/17).
- Thar: reductions in the range of ~₹1.01–1.35 lakh depending on variant and drivetrain.
- Scorpio Classic / Scorpio-N: reductions around ~₹1.01 lakh to ~₹1.45 lakh.
- XUV700 / Thar Roxx: similar-level reductions often exceeding ₹1 lakh on many trims.
Note: These reductions apply to new vehicles purchased after the reform and contact the dealership to know further details. Used cars are not covered by the new GST slabs.
Why Popular Mahindra is the practical choice today
At Popular Mahindra we translate the GST policy change into clear financial outcomes so you can make decisions with confidence. Our showrooms display updated on-road pricing that reflects the new GST slabs — not hypothetical savings, but the actual numbers you will pay at purchase. We provide a transparent, line-by-line price breakdown showing ex-showroom costs, GST, registration and statutory fees alongside any manufacturer or dealer offers. We also deliver tailored EMI calculations that show monthly impact based on the exact variant and on-road price you select. For buyers evaluating EV versus ICE, we prepare realistic, localised total cost of ownership comparisons that factor in your daily commute, regional electricity/fuel pricing, maintenance expectations and applicable state incentives. Our team handles documentation, finance approvals and delivery efficiently — we don’t waste your time with jargon or hidden charges. If you want fair negotiation power, the manufacturer and dealer price adjustments give you factual leverage; if you prefer a smooth and fast purchase, we’ll complete the process with clarity and speed. In short: we make the tax savings usable, not theoretical.
Act now to secure the GST-adjusted pricing and choose the Mahindra model that meets your needs.
The GST 2025 changes are real, measurable and already reflected in dealership pricing. If you plan to buy a new Mahindra, this is a timely window to secure better value, reduce EMI pressure, or opt for a higher-spec model within the same budget. Visit Popular Mahindra in Ernakulam or Kollam, use contact options at www.popularmahindra.com, or contact us through the website to lock in the new GST-adjusted price and schedule a test drive.