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Brinks Report > Blog > Automobile > Will Mahindra SUVs Get Cheaper? The Tax Shock Shaking the Market!
Automobile

Will Mahindra SUVs Get Cheaper? The Tax Shock Shaking the Market!

Brinks Report
Last updated: March 11, 2025 5:17 pm
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Trulli

Will Mahindra Slash SUV Prices Amid Rising Taxes?

Mahindra SUVs like the XUV700 and Thar have ruled Indian roads for years, but recent tax hikes in states like Maharashtra are stirring up the automotive market. With the government increasing taxes on vehicles, including EVs and CNG cars, the big question is: Will Mahindra cut prices to stay competitive?

Let’s dive into the story behind the whispers and what it means for SUV buyers.

Trulli

The Tax Twist: What’s Happening?

Maharashtra, one of India’s largest car markets, recently raised taxes on electric vehicles (EVs) and CNG cars. While EVs now face a 6% tax (up from 5%), CNG vehicles are taxed at 7%. These changes might seem small, but they add to the overall cost of owning a car.

For Mahindra, known for its petrol and diesel SUVs like the XUV700 and Thar, the direct impact isn’t huge—yet. But with taxes rising across the board, the pressure is on. Could this lead to price cuts for Mahindra’s popular SUVs?

Why Mahindra Might Cut Prices

Here’s why experts think Mahindra could lower prices:

  1. Fierce Competition: The SUV market is crowded, with Tata, Hyundai, and Kia launching new models. To stay ahead, Mahindra might need to adjust prices.
  2. Budget-Conscious Buyers: Rising fuel costs and inflation are making buyers think twice. A price cut could attract those on the fence.
  3. Clearing Stock: If Mahindra has high inventory, reducing prices could help clear old stock and make way for new models.

But there’s a twist. Mahindra’s SUVs, especially the XUV700 and Thar, are in high demand, with long waiting periods. This could mean the company doesn’t feel the need to cut prices—yet.

Also Read: India’s Top 5 Best-Selling SUVs of February 2025 – See Who’s Leading!

What Should Buyers Do?

If you’re planning to buy a Mahindra SUV, here’s what to keep in mind:

  • Watch for Price Drops: If Mahindra announces cuts, it could be the perfect time to buy.
  • Explore EVs: With rising taxes on conventional cars, Mahindra’s upcoming electric SUVs might be worth waiting for.
  • Calculate Costs: Consider taxes, fuel, and maintenance before making a decision.

The Bigger Picture

While Mahindra hasn’t confirmed any price cuts, the changing tax landscape and market competition could push them to act. For now, buyers should stay informed and weigh their options carefully.

Also Read: Tata Motors’ Tesla Rival Avinya Electric SUV May Be Priced Around Rs 25 Lakh: Sources

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TAGGED:Indian automotive marketMaharashtra vehicle taxMahindra price strategyMahindra SUVsSUV price cutsTharXUV700
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