Mahindra Thar Price After GST 2.0: The news is finally here! If you’ve been dreaming of owning the iconic off-roader, the Mahindra Thar, now is perhaps the best time to turn that dream into a reality. The implementation of the reformed tax structure, often dubbed GST 2.0, has brought about a substantial and much-welcomed price rationalization across the Indian automobile industry, and the Thar price after GST 2.0 implementation is making headlines.Â
This is not just a minor adjustment; it’s a game-changer that makes this rugged SUV significantly more accessible to a wider range of buyers. We’re diving deep into the new pricing, the mechanics behind the tax cut, and what this means for you as a potential buyer.
Decoding the GST 2.0 Effect on SUVs
The new GST framework, effective from September 22, 2025, has simplified the tax structure for automobiles, particularly impacting the SUV segment. Previously, larger SUVs like the Mahindra Thar attracted a combined Goods and Services Tax (GST) and Compensation Cess that pushed the total tax burden close to 50%.
The Core Change: Tax Rationalization
The key provision in GST 2.0 for larger vehicles is the abolition of the Compensation Cess and the establishment of a single, flat GST rate.
- Old Tax Structure (on larger SUVs): 28\% \text{ GST} + \text{up to } 22\% \text{ Cess} = \text{up to } 50\% \text{ Total Tax}
- New Tax Structure (under GST 2.0): 40\% Flat GST (Cess abolished)
This immediate 10 percentage point reduction in the effective tax rate is what major manufacturers, including Mahindra, are passing on entirely to the consumers.
Variant-Wise Thar Price After GST 2.0 Implementation
Mahindra has acted swiftly to announce the price reductions, ensuring the full benefit is passed on to customers immediately. The savings on the Thar are substantial, making it a more compelling value proposition than ever before.
3-Door Mahindra Thar Price Drop Highlights
The standard 3-door Mahindra Thar sees impressive price reductions across its 2WD and 4WD variants. The largest benefit is seen in the high-selling 2WD diesel variants.
| Thar Variant (Ex-Showroom) | Old Price (Approx.) | New Price (Approx.) | Price Reduction (Up to) |
|---|---|---|---|
| LX 2WD Hard Top Diesel MT | ₹13.16 Lakh | ₹11.81 Lakh | ₹1.35 Lakh |
| AX(O) 4WD Soft Top Diesel MT | ₹14.99 Lakh | ₹14.13 Lakh | ₹86,100 |
| LX 4WD Hard Top Diesel AT | ₹17.62 Lakh | ₹16.61 Lakh | ₹1.01 Lakh |
| LX 4WD Hard Top Petrol AT | ₹16.80 Lakh | ₹15.84 Lakh | ₹96,400 |
Data compiled from Mahindra’s official price revision announcement. Prices are Ex-Showroom, Pan-India.
Insight: Notice how the Thar 2WD Diesel MT gets the maximum price cut of up to ₹1.35 lakh. This makes the entry barrier for the most torque-y and fuel-efficient Thar significantly lower. This is a strategic move to boost volumes for the most accessible variant.
Also Read: Tata Nexon Post GST 2.0 Price: Check New & Old Variant-Wise Rates
Mahindra Thar Roxx (5-Door) Also Gets Cheaper
The recently launched 5-door iteration, the Mahindra Thar Roxx, which falls into the same tax bracket due to its engine capacity, has also received significant price benefits, making it an even more attractive option for those needing more space and practicality.
- The price cut on the Mahindra Thar Roxx ranges from approximately ₹74,000 to ₹1.33 lakh, depending on the variant.
- The highest benefit of ₹1.33 Lakh is applicable to the fully-loaded AX7L 4WD diesel-automatic variant of the Thar Roxx.
This reduction directly pits the Thar Roxx against rivals like the Tata Safari and Hyundai Creta in an even more aggressive manner.
Why This Price Drop is a Big Deal for Buyers
- Lower On-Road Price: The ex-showroom price reduction directly translates to a lower on-road price, as RTO charges and insurance costs are calculated on the ex-showroom price. This is a cascading benefit.
- Affordability Boost: The \text{Thar price after GST 2.0 implementation} has dropped the entry price point for a diesel Thar to just over ₹11.8 lakh (ex-showroom), making it much more affordable.
- Upgrade Opportunity: Buyers who were budgeting for a lower trim can now comfortably upgrade to a higher-spec variant, perhaps one with an automatic transmission or the more capable 4WD system, while staying within their original budget.
- Market Confidence: This tax rationalization comes just before the festive season (Diwali, etc.), a historically strong period for car sales, which is likely to boost overall consumer confidence and market demand.
As per a recent statement by Mahindra’s CEO, the company is committed to passing on the full benefit to the consumer, reflecting the “spirit of the new tax reform which aims to simplify and reduce the burden on aspirational vehicle segments.”
Next Steps for Prospective Thar Owners (CTA)
The price correction for the Mahindra Thar after GST 2.0 implementation represents a golden window of opportunity. The reduced tax liability combined with any upcoming festive offers could lead to shorter waiting periods and even better deals.
- Take Action Now: Contact your nearest Mahindra dealership today to get the exact on-road price quote for the Thar variant you desire.
- Explore Finance Options: With the ex-showroom price lowered, the EMI amount will also be lower, improving your loan eligibility. You can check competitive financing options available [here at a reputable finance portal]. (Internal Link suggestion: “Compare the Best Auto Loan Interest Rates Post-GST 2.0”)
- Book a Test Drive: Experience the power and off-roading capability firsthand. Don’t wait, as the surge in demand is expected to push waiting times up quickly.
FAQs
Q1: When did the new GST 2.0 rates become effective for the Mahindra Thar?
The revised GST rates, which led to the price drop in the Thar, became effective nationwide from September 22, 2025. Mahindra immediately passed on the benefit to customers.
Q2: Is the price cut applicable to both the 3-door and the new Thar Roxx (5-door)?
Yes, the price rationalization is applicable to all variants of the Mahindra Thar, including the standard 3-door model and the newly launched 5-door Thar Roxx, with savings ranging up to ₹1.35 Lakh.
Q3: Why did the price of the Thar decrease when the new tax rate is 40%?
The price decreased because the previous combined tax (GST + Cess) on the Thar was around 50\%. The new tax structure simplifies this to a flat 40\% GST (with zero cess), resulting in an effective tax reduction of about 10 percentage points, which translates into significant price savings for the consumer.
Q4: Will the price cut affect my car loan’s EMI?
Yes, a lower ex-showroom price means the principal amount of your car loan will be lower, directly resulting in a lower Equated Monthly Instalment (EMI).
Q5: Is the Thar now considered a ‘Compact SUV’ under the new GST rules?
No, the Mahindra Thar (both 3-door and 5-door) still falls into the ‘Mid-Size/Large SUV’ category because its engine capacity (both petrol and diesel) and length exceed the limits defined for the 18\% GST bracket (sub-4 meter length and sub-1500cc diesel/sub-1200cc petrol). It is correctly taxed at the new 40\% rate.
