The Indian automotive industry has witnessed a significant shift with the introduction of GST 2.0, a restructured Goods and Services Tax framework. Under the new system, tax slabs have been simplified to just three categories: 5 percent, 18 percent, and 40 percent. The 28 percent and 48 percent slabs have been abolished, offering immediate relief to car buyers across segments.
Among the many beneficiaries, the Mahindra Thar, a popular lifestyle SUV, has become more affordable. Depending on the variant, the Thar is now cheaper by Rs 81,400 to Rs 1.35 lakh. This reduction places the vehicle in a more competitive bracket, attracting both enthusiasts and practical buyers, especially as the festive season approaches.
GST 2.0: The New Tax Structure
The Union Government introduced GST 2.0 last week with the aim of reducing complexity and making vehicles more affordable. The revised tax slabs are:
- 5 percent
- 18 percent
- 40 percent
Previously, the automobile industry operated under four slabs—5 percent, 28 percent, 31 percent (28 percent + 3 percent cess), and 48 percent. Many utility vehicles, SUVs, and premium models were heavily taxed under the higher categories.
Now, under GST 2.0, mid-range SUVs like the Mahindra Thar fall into the 18 percent bracket, while some petrol variants are taxed at 40 percent instead of 48 percent. This structural change has enabled carmakers to pass the tax benefits directly to buyers.
Short Summary Table
Feature |
Details |
|---|---|
Car Model |
Mahindra Thar |
Price Reduction |
Rs 81,400 to Rs 1.35 lakh |
Reason for Price Cut |
GST 2.0 tax restructuring |
Diesel Variants Affected |
LX (-1.35 lakh), AX Opt (-1.18 lakh) |
Petrol Variant Affected |
LX (-81,400) |
New GST Slabs |
5%, 18%, 40% |
Previous GST Slabs |
5%, 28%, 31% (with cess), 48% |
Engine Options |
1.5L Diesel, 2.2L Diesel, 2.0L Petrol |
Transmission Options |
6-speed manual, 6-speed automatic |
Official Site |
Mahindra’s Proactive Approach
While GST 2.0 officially came into effect on September 22, Mahindra had already begun offering benefits to customers from September 6. This proactive approach extended across its entire portfolio, including the Thar SUV, ensuring buyers received early access to lower prices.
Mahindra Thar Price Reductions Explained
The Mahindra Thar has seen one of the most significant price cuts under GST 2.0. Here is the detailed breakdown:
- Diesel Variants (4×2 drive)
- LX: Price reduced by Rs 1.35 lakh
- AX Opt: Price reduced by Rs 1.18 lakh
- Reason: GST dropped from 31 percent (28 percent + 3 percent cess) to 18 percent
- Petrol Variant (2WD system)
- LX: Price reduced by Rs 81,400
- Reason: GST rate revised from 48 percent to 40 percent
This makes the Thar more accessible to a wider audience, particularly first-time SUV buyers who were previously deterred by higher costs.
Broader Impact on the Auto Industry
The Mahindra Thar is not the only vehicle to benefit from GST 2.0. Several leading automakers, including Maruti Suzuki, Tata Motors, Hyundai, and Toyota, have also slashed prices across their product ranges. This is expected to drive demand during the Diwali festive season, traditionally one of the strongest periods for automobile sales in India.
For customers, the new GST framework translates to:
- Lower upfront purchase prices
- Reduced financial burden on loans and EMIs
- Improved affordability of SUVs and premium cars
Mahindra Thar: Engine Options and Performance
The Mahindra Thar remains one of the most versatile SUVs in its segment. It comes with three engine options, ensuring buyers have multiple choices based on performance needs.
- Diesel Engines
- 1.5L 4-cylinder turbocharged mHawk: Produces 117 bhp and 300 Nm torque
- 2.2L 4-cylinder turbocharged CRDe: Delivers 130 bhp and 300 Nm torque
- Petrol Engine
- 2.0L 4-cylinder turbocharged mStallion TGDi: Generates 150 bhp and 300 Nm torque (320 Nm with 6-speed automatic)
Both manual and automatic transmission options are available, making the Thar suitable for off-road enthusiasts as well as urban users.
Key Features of Mahindra Thar
The Mahindra Thar is well-equipped with modern technology and comfort features, making it a balanced mix of ruggedness and convenience. Some of its notable features include:
- Power Windows
- Electrically Adjustable ORVMs
- 50:50 Split Rear Seats
- Roof-mounted Speakers
- BlueSense App for connected car functions
- Cruise Control
- TFT Multi-Information Display
- Steering-mounted Audio and Phone Controls
- Touchscreen Infotainment System
- Dual Front Airbags
- Intellipark Rear Parking Assist
These features enhance both driving convenience and safety, ensuring the Thar appeals to a wide audience beyond just off-road enthusiasts.
FAQs
1. What is GST 2.0?
GST 2.0 is a revised Goods and Services Tax structure with simplified slabs of 5%, 18%, and 40%, replacing the earlier complex system.
2. How much cheaper is the Mahindra Thar after GST 2.0?
Depending on the variant, the Thar is cheaper by Rs 81,400 to Rs 1.35 lakh.
3. Which Thar variant received the highest price cut?
The diesel LX variant with a 4×2 drive saw the largest reduction of Rs 1.35 lakh.
4. Is Mahindra passing GST benefits on all models or just Thar?
Mahindra is passing GST benefits across its entire product range, not just the Thar.
5. Does GST 2.0 affect all car brands?
Yes, leading brands such as Maruti Suzuki, Hyundai, Tata Motors, and Toyota have also cut prices in response to GST 2.0.
6. Will these lower prices last permanently?
Yes, the revised prices are effective as long as GST 2.0 remains in place. However, future tax changes or policy updates may affect pricing again.
Conclusion
The implementation of GST 2.0 has reshaped the Indian auto market by simplifying taxes and making vehicles more affordable. For buyers, the Mahindra Thar stands out as a major beneficiary, with price cuts of up to Rs 1.35 lakh.
Equipped with robust engines, modern features, and a more accessible price tag, the Thar now appeals to an even larger audience. As the festive season approaches, this price revision presents an ideal opportunity for buyers to invest in one of India’s most popular SUVs.
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