Mahindra's August sales see slight decline; exports increase marginally

The GST on small cars was reduced to 18% from 28%, owing to which the prices of vehicles have dropped significantly, thereby dragging the sales

Mahindra & Mahindra Ltd (M&M Ltd)'s auto sales for the month of August 2025 stood at 74,027 vehicles (PV+CV), a slight decline from 74,627 recorded a year ago, whereas the company’s production grew to 86,890 units from 79,788 in August 2024.

 

The decline in the company’s sales is likely due to the Goods and Services Tax (GST) revamp announced by Prime Minister Narendra Modi on 15 August 2025, during his Independence Day speech.

 

The GST Council, earlier this month, approved a two-slab structure. It removed the 12 per cent and 28 per cent slabs and slashed rates on a wide range of essential items while bringing higher levies on select products. The GST rates will be effective from September 22.

 

 

The GST on small cars was reduced to 18 per cent from 28 per cent, owing to which the prices of vehicles have dropped significantly, thereby dragging the sales. GST on SUVs, which earlier attracted 48 per cent tax including GST and cess, has now been placed in the sin and luxury goods category and taxed at 40 per cent flat.

 

The company’s exports for the month of August 2025 increased to 3,575 from 3,118 a year ago, despite global uncertainty on trade, due to tariffs imposed on Indian exports to the United States by President Donald Trump.

 

Sales of Thar, XUV and Scorpio

 

The sales of Mahindra’s Thar and Thar Roxx (diesel variant) increased to 6,205 from 4,120; however, production also rose to 7,818 from 5,279 units, leading to a rise in inventory.

 

The sales of XUV3XO and XUV400 (diesel and electric variants) saw a significant drop to 1,799 in August 2025 from 4,093 a year ago, while production fell to 3,761 from 2,392.

 

The most visible impact was seen on the sales of Scorpio (diesel variant), which dropped to 9,383 from 12,991, whereas production rose to 13,517 from 12,674. Exports, however, increased sixfold, to 306 from 51.

 

Reduction in prices

 

Earlier this week, Mahindra announced that it will pass on the benefits of GST reduction to consumers and released revised ex-showroom prices of vehicles.

 

Thar (2WD): Earlier 31%; now 18%; benefits of up to ₹1.35 lakh

 

XUV3XO (Diesel): Earlier 31%; now 18%; benefits of up to ₹1.56 lakh

 

Scorpio Classic: Earlier 48%; now 40%; benefits of up to ₹1.01 lakh

 

Thar Roxx: Earlier 48%; now 40%; benefits of up to ₹1.33 lakh