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Significant Price Cuts on Mahindra SUVs

Mahindra and Mahindra has announced substantial price reductions on its SUV lineup, effective Friday. This decision comes in light of the recent reforms in the goods and services tax (GST), allowing the company to pass on savings to its customers. Models such as the Bolero/Neo, XUV 3XO, Thar, Scorpio Classic, Scorpio-N, Thar Roxx, and XUV700 will see price drops of up to Rs 2.56 lakh, with additional savings reaching as high as Rs 1.29 lakh.

These new pricing adjustments apply exclusively to the company's internal combustion engine (ICE) vehicles and do not extend to their electric vehicle offerings. This marks the second instance within a month that Mahindra has implemented price cuts. Earlier, on September 6, the automaker had reduced prices on its passenger vehicle range, including the Bolero, Bolero Neo, Thar 2WD, Thar 4WD, Scorpio-N, and Thar Roxx, by as much as Rs 1.56 lakh.

According to the revised GST framework, the tax on small cars (those under 4 meters, with petrol engines up to 1,200cc and diesel engines up to 1,500cc) has been reduced from 28% plus a 1% cess to a flat 18% with no cess. For larger vehicles, including SUVs, the GST rate has been adjusted to 40% without any cess, replacing the previous structure of 28% plus a 22% cess.

The only category experiencing a tax increase is two-wheelers exceeding 350cc, which now fall under the 40% GST bracket. Additionally, the agriculture sector benefits from a reduction in GST on tractors, harvesters, threshers, fodder balers, and similar machinery, which has been lowered from 12% to 5%.

Furthermore, a unified 18% GST rate has been established for all auto parts, simplifying the taxation process for the automotive industry.