The Indian auto market just got a major shake-up with the rollout of GST 2.0. Compact SUVs like the Mahindra XUV 3XO now benefit from lower tax rates, making them significantly more affordable. Until recently, sub-4 metre SUVs were charged a hefty 28% GST plus an additional cess, but the new system has reduced the rate to just 18%. Mahindra has passed this benefit directly to buyers, dropping prices across all trims. For many Indian families looking for a budget-friendly SUV, this price correction couldn’t have come at a better time.
Mahindra XUV 3XO Price After GST Cut – How Much You Save Now
With the GST cut, Mahindra has slashed prices across petrol and diesel variants, both manual and automatic. The entry-level MX1 petrol now starts at ₹7.28 lakh (ex-showroom), making the SUV more accessible than ever. Higher variants like the AX7 L see even bigger cuts, with savings up to ₹1.56 lakh.
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GST Rate Price Cut – Why This Matters for Buyers
The GST 2.0 reform is more than just a number on paper. It has real benefits for car buyers across India. By reducing the tax slab for compact SUVs to 18%, the government has effectively lowered the burden on middle-class families. This means not only cheaper ex-showroom prices, but also lower insurance premiums, reduced registration charges, and even lower EMIs. For young professionals and first-time SUV buyers, the XUV 3XO has suddenly become a lot more attractive.
Mahindra XUV 3XO Features That Remain Unchanged
The best part about this price correction is that nothing has been cut from the SUV itself. The Mahindra XUV 3XO continues to offer premium features such as:
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360-degree camera for better visibility
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Advanced driver assistance (ADAS) for safety
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Dual-zone climate control for comfort
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Panoramic sunroof for a premium feel
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Six airbags and strong crash-test ratings
These features make the 3XO one of the most feature-loaded SUVs in its class. Buyers now get all these advanced options at a much lower entry price, which strengthens its value in the competitive SUV market.
After New GST Price – Festive Discounts Add More Value
The timing of the GST reform is another advantage for buyers. With the festive season around the corner, Mahindra is offering additional discounts of up to ₹90,000 on select variants. When combined with the GST benefit, total savings can cross ₹2.5 lakh. Add exchange bonuses and easy finance schemes, and the XUV 3XO looks like one of the smartest buys of 2025. Dealerships are already reporting a rise in inquiries, which means buyers may face longer waiting periods if they delay bookings.
Mahindra XUV 3XO now comes with a GST benefit of up to Rs 1.56 lakh 💥
— RushLane (@rushlane) September 8, 2025
Both Petrol & Diesel trims get significant value gains 🚙🔥
👉 New prices effective Sept 6, 2025.#Mahindra #XUV3XO #GSTBenefit #SUV pic.twitter.com/DAJ2anyUUU
Conclusion
The Mahindra XUV 3XO’s sharp price cut under GST 2.0 has completely changed its position in the compact SUV market. With ex-showroom prices down by up to ₹1.56 lakh, plus festive discounts and finance benefits, the 3XO has become one of the best-value SUVs in India. For anyone looking to upgrade their car or step into the SUV segment, this is the right time to make the move. The new GST rates have made owning a feature-packed, stylish, and safe SUV like the XUV 3XO easier than ever.
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