Mahindra has been making waves in the Indian SUV market with the XUV 3XO, a stylish compact SUV loaded with premium features. While most buyers compare ex-showroom prices, many forget how much the Goods and Services Tax (GST) impacts the final on-road price.
If you are planning to buy the Mahindra XUV 3XO in 2025, understanding the GST rate and tax components can help you estimate the real cost of ownership.
GST Rate on SUVs in India
The Indian government levies GST + Cess on cars depending on:
- Vehicle length
- Engine capacity
- Ground clearance
- Type (SUV, sedan, hatchback, EV, etc.)
For SUVs like the Mahindra XUV 3XO, the GST rate is:
- 28% GST (standard for cars)
- 22% Compensation Cess (applies if: length > 4m, engine > 1500cc, ground clearance > 170mm)
👉 However, since the Mahindra XUV 3XO comes with both petrol and diesel engine options under 1.2L petrol and 1.5L diesel, the GST impact differs.
Mahindra XUV 3XO GST Rate: Petrol vs Diesel
- Petrol Variants (1.2L Turbo Petrol)
- Engine capacity is below 1200cc.
- GST applicable: 28% + 1% Cess.
- Total tax: 29%.
- Diesel Variants (1.5L Diesel)
- Engine capacity is above 1500cc (1497cc rounded).
- GST applicable: 28% + 17% Cess.
- Total tax: 45%.
This is why diesel models often cost significantly more than petrol ones despite similar features.
Example Price Calculation (Indicative)
Let’s assume an ex-factory price for a mid-variant of Mahindra XUV 3XO Petrol is ₹9,00,000.
- Base Price (Ex-factory): ₹9,00,000
- GST @28%: ₹2,52,000
- Cess @1%: ₹9,000
- Ex-showroom Price: ₹11,61,000
Now add:
- Road Tax: ~10% (₹1,16,000)
- Insurance: ~₹50,000
- Registration & Others: ~₹15,000
👉 On-road Price (Petrol Mid Variant) ≈ ₹13.4 lakh
For the diesel variant, the tax slab increases, pushing the price up by at least ₹1.5–2 lakh compared to the petrol counterpart.
Why GST Matters for Buyers
- Helps you calculate on-road price more accurately.
- Petrol SUVs attract lower cess, hence more affordable.
- Diesel SUVs fall under higher cess slab, increasing cost.
- Future policy changes in GST could make SUVs either cheaper or costlier.
Mahindra XUV 3XO Price Range with GST (2025)
- Petrol variants: ₹7.5 lakh – ₹13.9 lakh (ex-showroom)
- Diesel variants: ₹9.5 lakh – ₹15.5 lakh (ex-showroom)
After adding GST, cess, insurance, and road tax, the on-road prices can cross ₹16–18 lakh for higher diesel trims in metro cities.
Rakesh Kumar is the author of mhexport-maharashtra.in, where he writes well-researched articles on technology (mobile reviews) and automobiles (car and bike updates). He holds a B.A. (2020) and an M.A. from Lucknow University. With over 3 years of experience in content writing, Rakesh has been consistently delivering insightful and engaging content in the tech and automobile space.