The reduction in GST has brought a new wave of excitement to the Indian automobile industry. Following this major government decision, major companies like Mahindra and Renault have announced significant price reductions, directly benefiting customers. This reduction was made following the 56th GST Council meeting held on September 3, 2025, and became effective from September 6. This means you can make significant savings on your favorite vehicle today.
Up to ₹1.56 lakh benefit on Mahindra vehicles
Mahindra & Mahindra has reduced the prices of its passenger vehicles by up to ₹1.56 lakh to pass on the full benefits of the GST reduction to its customers. This decision has been implemented transparently across all dealerships and digital platforms.
The company has reduced prices of the Bolero/Neo range by up to ₹1.27 lakh. Meanwhile, the XUV3XO petrol variants are receiving significant discounts of ₹1.4 lakh, and diesel variants are receiving ₹1.56 lakh.
The Thar 2WD (diesel) has seen a price reduction of ₹1.35 lakh, while the Thar 4WD (diesel) and Scorpio Classic are receiving a discount of ₹1.01 lakh. Furthermore, the Scorpio-N has received significant discounts of ₹1.45 lakh, the Thar Roxx ₹1.33 lakh, and the XUV700 ₹1.43 lakh.
Reno cars receive discounts of up to ₹96,395
In addition to Mahindra, Renault India has also announced a price reduction of up to ₹96,395 to pass on the GST rate cut to its customers. This reduction will be effective on all deliveries from September 22, 2025. Customers can start booking at the new prices starting today.
Venkatram Mamillapalle, Managing Director, Renault India, said, “Passing the full benefits of GST 2.0 to customers reflects our unwavering commitment to our customers.” The company believes this timely initiative will not only make its cars more affordable but also significantly boost sales during this festive season. Renault’s entry-level model, the Kwid, has received a price cut of up to ₹55,095, while the Triber and Kiger receive the maximum benefit of up to ₹80,195 and ₹96,395, respectively.
Major Impact of GST Reduction
The GST Council recently proposed limiting the tax slabs to 5% and 18%, respectively. This move by major players like Mahindra and Renault is extremely positive for the Indian auto market. It will increase demand for affordable and value-for-money cars like the Triber and Kiger. This GST reduction is a golden opportunity for all those who want to bring home their new car this festive season.