Mahindra XUV 3xo GST Rate 2025 – The year 2025 has brought one of the biggest tax reforms in India’s automotive sector with the new GST 2.0 framework. This reform has simplified the tax structure and directly impacted car prices, especially in the SUV segment.
Among the biggest beneficiaries is the Mahindra XUV 3XO, a compact SUV that now comes under a lower GST slab. In this article, let’s break down the GST rate on Mahindra XUV 3XO in 2025, how it has changed prices, and what buyers stand to gain.
GST 2.0 – A Quick Background
- In September 2025, the 56th GST Council meeting introduced a two-slab structure for most goods: 5% and 18%, while keeping a 40% slab for luxury/high-end items.
- For automobiles, “small cars” (defined by length and engine capacity) were placed under the 18% slab.
- Larger SUVs and premium vehicles continue to attract the higher 40% GST rate.
Mahindra XUV 3XO GST Rate 2025
Mahindra confirmed that the XUV 3XO is now taxed at 18% GST since it qualifies as a compact SUV (under 4 metres and smaller engine sizes).
This means that along with models like the Bolero, Bolero Neo and Thar 2WD Diesel, the XUV 3XO has shifted to the lower tax bracket. Bigger SUVs such as Scorpio-N and XUV700 continue to fall under the 40% slab.
Price Reduction and Savings for Buyers
Thanks to the new GST structure and Mahindra’s decision to pass the benefits directly to customers, prices of the XUV 3XO have dropped significantly.
| Benefit Type | Amount Saved |
|---|---|
| GST Rate Cut | Up to ₹1.56 lakh |
| Dealer/Festive Offers | Up to ₹90,000 |
| Total Potential Savings | Up to ₹2.46 lakh |
- The new starting price of the Mahindra XUV 3XO is now around ₹7.28 lakh (ex-showroom).
- This makes it one of the most affordable compact SUVs in the segment, while still offering premium features.
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Why This Matters
- Lower Ownership Cost – With reduced GST and discounts, the on-road cost for buyers comes down considerably.
- Stronger Competition – XUV 3XO is now positioned more aggressively against rivals like the Tata Nexon, Kia Sonet, and Hyundai Venue.
- Customer-First Strategy – Mahindra has clearly chosen to pass the full tax benefit to customers, strengthening brand trust.
- Market Push – With this price drop, Mahindra is likely to boost sales in the entry-level SUV category.
Final Thoughts
The Mahindra XUV 3XO GST rate in 2025 is 18%, and this shift has resulted in a price cut of up to ₹2.46 lakh for buyers.
With lower taxes, attractive offers, and Mahindra’s aggressive pricing, the XUV 3XO now offers excellent value for money in the compact SUV space.
If you are planning to buy a budget-friendly yet feature-rich SUV this festive season, the XUV 3XO is now more tempting than ever.
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