The Indian automotive market is buzzing with excitement as the newly introduced GST 2.0 tax structure brings significant price reductions for vehicles, including the iconic Mahindra Thar. Effective from September 6, 2025, Mahindra has slashed prices across its Thar lineup by up to Rs. 1.35 lakh, passing on the full benefits of the revised tax slabs to customers. With the festive season approaching, this move makes the rugged Thar more affordable for adventure enthusiasts and off-road lovers. Here’s a detailed look at the price cuts and what makes the Thar a standout choice.

GST 2.0: Simplified Tax Slabs Bring Big Savings

The Union Government rolled out GST 2.0 last week, streamlining tax rates into three slabs: 5%, 18%, and 40%, eliminating the previous 28% and 48% categories. This reform has prompted automakers, including Mahindra, to reduce vehicle prices, with the Thar seeing substantial cuts across its variants. Unlike some brands waiting until September 22, Mahindra has implemented these price reductions early, starting September 6, giving buyers an immediate opportunity to save.

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Mahindra Thar Price Reductions by Variant

• Diesel 4×2 Variants (LX and AX Opt): The base diesel LX variant now costs Rs. 1.35 lakh less, while the AX Opt variant is cheaper by Rs. 1.18 lakh. These models, previously taxed at 31% (28% GST + 3% cess), now fall under the 18% GST slab, making them significantly more affordable.
• Petrol 2WD Variant (LX): The entry-level petrol LX with a 2WD system sees a price cut of Rs. 81,400, as its GST rate drops from 48% to 40%.
• Diesel 4×4 Variants (LX and AX Opt): These rugged variants benefit from price reductions of Rs. 1.01 lakh (LX) and Rs. 86,900 (AX Opt), with the GST rate lowered from 48% to 40%.
• Petrol 4WD Variants (LX and AX Opt): The petrol-powered 4WD models are now more affordable by Rs. 96,300 (LX) and Rs. 83,100 (AX Opt), thanks to the same GST reduction from 48% to 40%.

Engine Options and Performance

The Mahindra Thar remains a versatile off-roader with three engine options:

• 1.5L Turbo Diesel (mHawk): This 4-cylinder engine delivers 117 bhp and 300 Nm of torque, ideal for budget-conscious buyers seeking efficiency and capability.
• 2.2L Turbo Diesel (CRDe): A more powerful diesel option, producing 130 bhp and 300 Nm, designed for tougher terrains and enhanced performance.
• 2.0L Turbo Petrol (mStallion TGDi): This engine generates 150 bhp and 300 Nm (320 Nm with the 6-speed automatic), offering a spirited drive for petrol enthusiasts.

All variants come with a 6-speed manual or a 6-speed torque converter automatic transmission, ensuring flexibility for different driving preferences.

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Features That Make the Thar Stand Out

The Mahindra Thar combines rugged styling with modern conveniences, making it a favorite among SUV buyers. Key features include:

• Power windows and electrically adjustable ORVMs for added convenience.
• A touchscreen infotainment system with Blue Sense App connectivity.
• Steering-mounted audio and phone controls for easy access.
• Cruise control and a TFT multi-information display for a premium driving experience.
• Safety features like dual front airbags, Intellipark rear parking system, and 50:50 split seats for practicality.

This Matters for Buyers

The GST 2.0 reforms have made vehicles more affordable across the board, with leading brands like Maruti Suzuki, Tata Motors, Hyundai, and Toyota also passing on tax benefits to customers. For Mahindra Thar buyers, the timing couldn’t be better, as the price cuts align with the festive season, including Diwali, when car purchases typically surge. The Thar’s blend of off-road prowess, modern features, and now lower prices makes it an attractive option for those seeking adventure without breaking the bank.

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Industry Impact and Festive Season Boost

The revised GST structure is expected to drive higher showroom footfall and boost industry growth beyond earlier projections. Mahindra’s early implementation of price reductions positions the Thar as a strong contender in the SUV market, appealing to both urban buyers and off-road enthusiasts. With its iconic design, robust engines, and enhanced affordability, the Mahindra Thar is set to make waves this festive season.