In another round of SUV price cuts, Mahindra and Mahindra on Friday said it is passing on benefits to customers after the recent goods and services tax (GST) reforms. Prices of models like the Bolero/Neo, XUV 3XO, Thar, Scorpio Classic, Scorpio-N, Thar Roxx, and XUV700 have been reduced by up to Rs 2.56 lakh, with the latest cuts giving additional savings of up to Rs 1.29 lakh.
The new prices are limited to the company’s internal combustion engine (ICE) vehicles only and don’t include the electric vehicle portfolio. This is the second time in a month that Mahindra has announced the price cuts. The automaker had announced a price drop on its passenger vehicle lineup, including the Bolero, Bolero Neo, Thar 2WD, Thar 4WD, Scorpio-N, and Thar Roxx, by up to Rs 1.56 lakh on September 6.
As per the new framework:
GST on small cars (under 4 metres, with petrol engines up to 1,200cc and diesel up to 1,500cc) has been cut from 28% plus 1% cess to a straight 18% with no cess.
Bigger vehicles, including SUVs, will now attract 40% GST without any cess, replacing the earlier 28% plus 22% cess setup.
The only segment seeing a rise is two-wheelers above 350cc, which now fall under the 40% GST slab.
For the agriculture sector, GST on tractors, harvesters, threshers, fodder balers, and similar machinery has been reduced from 12% to 5%.
A single 18% GST rate has also been introduced for all auto parts, making taxation simpler for the industry.
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