What's Happening in the Automotive Industry Right Now?
If you’ve been keeping an eye on car prices, you’ve probably noticed a wave of discounts shaking up the market. The most talked‑about move came from Mahindra, which trimmed prices by up to Rs 1.56 lakh after the GST Council reset rates. Small cars now sit at an 18% GST, while bigger ones face a flat 40%. That shift forced Mahindra to slash prices across its lineup – from the XUV300 to the iconic Thar – starting September 6.
Why the Price Cuts Matter
Price cuts aren’t just a sales gimmick; they signal how the industry reacts to policy changes. When the GST rate drops for smaller cars, manufacturers can pass the savings to buyers, making entry‑level vehicles more affordable. For larger SUVs and trucks, the flat 40% rate means any reduction in the base price directly benefits the consumer. Mahindra’s decision reflects a broader strategy: stay competitive during the festive season when demand spikes.
Other automakers are watching closely. Some have already announced their own discounts, aiming to capture the holiday buying surge. If you’re planning to upgrade, now’s a good time to compare offers. A lower GST on a compact car could mean you save enough for a better trim level or added features.
How GST Reform Impacts Your Next Car Purchase
The GST Council’s rate reset is simple: cars under 1,000 cc get an 18% tax, everything above that sees a flat 40%. This change helps keep small car prices stable while giving manufacturers room to adjust larger vehicle pricing. For buyers, it translates to clearer price structures and often lower out‑of‑pocket costs.
What does this mean if you’re eyeing an SUV like the XUV700? Expect a price drop that could range from a few thousand to over a lakh, depending on the variant. The same logic applies to pickups and commercial vans – lower base prices plus the same GST rate can make a noticeable difference in total cost.
Beyond Mahindra, brands like Tata, Hyundai, and Maruti are also tweaking their price tags. The market is moving fast, and updates happen weekly. Keeping tabs on an online result checker site helps you stay ahead without waiting in showrooms.
In short, the automotive industry is in a price‑adjustment phase driven by GST reforms and seasonal demand. If you’re looking for a new ride, use these changes to your advantage: compare models, check the latest discount lists, and act while the offers last. Happy car hunting!
Mahindra price cut after GST reform: up to Rs 1.56 lakh across lineup
Sep, 9 2025
Mahindra has slashed prices by up to Rs 1.56 lakh after the GST Council’s rate reset. Small cars now attract 18% GST and larger vehicles a flat 40%, prompting across-the-board cuts on models like XUV3XO, Scorpio-N, XUV700, Thar, and Bolero. The new prices took effect on September 6. Other automakers have followed, setting up a festive season demand surge.