After Tata Motors, Mahindra says it will cut prices on its vehicles after GST reforms

Mahindra and Mahindra, one of the leading carmakers in the country, has announced that it will pass on the benefits of the recent GST reform to its customers.In a statement issued on September 6, the company said it will pass on the full GST benefits to customers across its entire ICE SUV portfolio. This follows the announcement of GST 2.0 at the 56th GST Council meeting held on September 3, 2025, and headed by Nirmala Sitharaman, Minister of Finance, Government of India.

The Mumbai-based company said that it will avail these benefits for its customers from Saturday, September 6.

Earlier, on September 5, Tata Motors, in a similar announcement, had said it would pass on the full benefit of the recent GST reduction on its cars and SUVs to customers, effective 22nd September 2025.In August, M&M recorded total auto sales of 75,901 units vs the CNBC-TV18 poll of 79,167 units. Tata Motors, on the other hand, saw total sales of 73,178 units, compared to the CNBC-TV18 poll of 69,670 units.

The GST regime, as part of a rationalisation exercise, has been reduced from 4 slabs and other cesses to two primary slabs: the 5% and 18% slabs. The system that will kick in from September 22 will also have a 40% tax on sin goods, e., cigarettes and other tobacco products, and luxury items, including some cars.

When it comes to luxury cars, the effective rate, although it has been raised from the previous 28% to the new 40%, will shed the weight of cess, which currently takes the price of vehicles to nearly 50%. This is expected to bring the price of these vehicles down.

It’s not just Indian companies; on September 5, BMW announced reduced rates after the GST cut. The X7 is expected to get cheaper by ₹9 lakh.

In addition to that, Renault India has also announced that it will slash prices by up to ₹95,000. Under the renewed GST regime, small cars, hatchbacks and mini SUVs will be taxed at 18%, while bigger cars will attract 40% GST.

Country’s largest carmaker, Maruti Suzuki, is also expected to make a similar announcement soon, potentially making the car market more accessible and affordable and increasing its penetration.

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