Kia and Mahindra Cut SUV Prices by Up to ₹4.48 Lakh Following GST Reduction Ahead of Festive Season

Car buyers are in for good news this festive season. Kia and Mahindra, two of the biggest names in the SUV segment, have announced significant price cuts on their vehicles. The reductions come after the government’s decision to lower the GST on SUVs, and both companies have confirmed they will pass on the full benefit to customers. The new prices will be effective from September 22, 2025, for Kia, and from September 6, 2025, for Mahindra.

Why the Prices Are Dropping

The GST Council recently revised the tax structure on SUVs, bringing it down from an effective 50% (28% GST plus 22% cess) to a flat 40%. The move is aimed at making passenger vehicles more affordable and boosting sales during the festive period, traditionally a high-demand season for carmakers.

Both Kia and Mahindra have embraced this opportunity to offer better deals, improve affordability, and enhance customer satisfaction. The price cuts are expected to not only attract new buyers but also boost sentiment in the auto sector.

(Continue reading after Kia to know the price cuts of Mahindra)

Kia’s Price Cuts: Up to ₹4.48 Lakh on Premium Models

Kia India announced that it will pass on the full GST benefit across its SUV lineup, helping customers save significantly on some models. The price reductions for key models are as follows:

• Kia Sonet – up to ₹1,64,471 off
• Kia Syros – up to ₹1,86,003 off
• Kia Seltos – up to ₹75,372 off
• Kia Carens – up to ₹48,513 off
• Kia Carens Clavis – up to ₹78,674 off
• Kia Carnival – up to ₹4,48,542 off

Mr. Gwanggu Lee, Managing Director and CEO of Kia India, welcomed the government’s reform. “We are proud to pass on the full benefit of the GST rate reductions to our customers, ensuring more affordability and greater accessibility. This significant reform simplifies the taxation framework and reinforces the government’s commitment to sustainable economic growth,” he said.

In addition to price cuts, Kia is expected to offer festive financing schemes such as low-interest EMIs, extended warranties, and exchange bonuses. These incentives are designed to make owning a vehicle easier and more convenient during this period.

Mahindra’s Price Cuts: Across All Variants for SUVs Like XUV 3XO, Scorpio, and Thar

Mahindra also announced that it will fully transfer the GST benefit to customers across its SUV range. The revised prices are set to come into effect from September 6, 2025, and apply to models like the XUV700, Scorpio-N, Thar, Thar Roxx, Scorpio Classic, and the newly launched XUV 3XO.

Here’s a breakdown of the price cuts for some key models:

XUV 3XO (Petrol Variants)

• MX1 – reduced by ₹70,600
• MX2 Pro – reduced by ₹93,200
• MX3 – reduced by ₹1,00,800
• MX3 Pro – reduced by ₹1,03,300
• AX5 – reduced by ₹1,10,400
• AX5L – reduced by ₹1,23,200
• REVX – reduced by ₹1,14,800
• AX7 – reduced by ₹1,23,700
• AX7L – reduced by ₹1,39,600

XUV 3XO (Diesel Variants)

• MX2 – reduced by ₹1,04,000
• MX2 Pro – reduced by ₹1,10,800
• MX3 – reduced by ₹1,24,600
• MX3 Pro – reduced by ₹1,20,400
• AX5 – reduced by ₹1,35,300
• AX7 – reduced by ₹1,53,100
• AX7L – reduced by ₹1,56,100

Scorpio Classic

• S – reduced by ₹80,100
• S11 – reduced by ₹101,500

Scorpio-N

• Z2 – reduced by ₹81,800
• Z4 – reduced by ₹1,03,500
• Z6 – reduced by ₹1,06,700
• Z8 S – reduced by ₹1,10,400
• Z8 – reduced by ₹1,33,900
• Z8 T – reduced by ₹1,38,600
• Z8 L – reduced by ₹1,44,600

Thar Variants

• 2WD Diesel LX – reduced by ₹1,35,400
• 2WD Diesel AX Opt – reduced by ₹1,18,300
• 2WD Petrol LX – reduced by ₹81,400
• 4WD Diesel LX – reduced by ₹1,01,000
• 4WD Diesel AX Opt – reduced by ₹86,900
• 4WD Petrol LX – reduced by ₹96,300
• 4WD Petrol AX Opt – reduced by ₹83,100

Thar Roxx

• MX1 – reduced by ₹81,200
• MX3 – reduced by ₹1,01,100
• AX3L – reduced by ₹98,300
• MX5 – reduced by ₹1,10,200
• AX5 L – reduced by ₹1,21,600
• AX7L – reduced by ₹1,32,900

XUV700

• MX – reduced by ₹88,900
• AX3 – reduced by ₹1,06,500
• AX5 S – reduced by ₹1,10,200
• AX5 – reduced by ₹1,18,300
• AX7 – reduced by ₹1,31,900
• AX7L – reduced by ₹1,43,000

Mahindra’s leadership also highlighted the customer-first approach behind this decision. The brand expects the revised prices to strengthen consumer sentiment and stimulate demand during the festive season. Customers can visit authorized dealerships across India to check the exact revised prices starting September 6, 2025.

What This Means for Buyers

With both Kia and Mahindra passing on the full benefit of the GST cuts, customers are likely to see more affordable options in a segment that has been growing rapidly over the past few years. The timing couldn’t be better, with the festive season around the corner.

Buyers can also expect attractive finance schemes, lower EMIs, exchange offers, and extended warranties from both brands, making it easier to own an SUV this season.

These moves are more than just price cuts, they reflect a growing focus on affordability and customer convenience, while also encouraging sustainable growth in India’s auto industry.

Disclaimer: The information about price drops in this article is based on what is available in public domain and/or announced by car makers mentioned above. However it is always advisable to contact the concerned manufacturer or their dealership to know the exact discounts and offers available as prices are dynamic and keep changing with market demand and competitive landscape.