There has been a major shift in the Indian car market recently, not just due to new car launches but also because of the revision in GST slab for vehicles. One of the cars capturing interest is the Mahindra XUV 3XO, an eye-catching compact SUV that combines design, comfort, technology, and performance in a neat package.
Prospective buyers who want to buy this SUV are particularly concerned about its on road price because at the end of the day it is that which determines how affordable it is. Under the new GST regime, the price equation of this SUV has become all the more compelling.
In this guide, we tell you the cost of all the variants of the Mahindra XUV 3XO in detail, how the new GST slab affects its final price and what makes it worth the price. It is all aim at you, so readers could find it simple everything, if to do not understand the taxation system clearly, you will understand what vehicle cost and for what you are actually paying for.
Understanding On-Road Price and the Role of GST
Ex-showroom price vs on-road price Two things that you hear a lot when it comes to car pricing are ex-showroom price and on-road price. The ex-showroom price is decided by the car manufacturer and includes the GST paid on the car.
However, it doesn’t include other costs such as road tax, insurance or registration charges. On-road price, meanwhile, is the total amount a buyer pays to be able to drive the car home. It had everything GST, registration, insurance and handling fees. In the earlier days, cars in India attracted 28 percent GST along with additional cess based on engine size and vehicle length.
This was what made cars in India, particularly sports utility vehicles (SUVs), so costly. With the recent reform, things have changed. Thus, small and compact cars with petrol engines of up to 1200cc and diesel engines of up to 1500cc and a length of up to 4 meters will be taxed at 18 percent under a new GST slab.
As the Mahindra XUV 3XO falls in the compact SUV segment, it now only attracts 18 percent GST without any additional cess. The new policy has increased the profit margin of the car and made the overall on-road price considerably cheaper.
New GST Slab with Variant-Wise Price Impact
Mahindra XUV 3XO Trim Levels The Mahindra XUV 3XO is offered in various trims catered towards different customer segments. GST rate cut for entry level variants has also made the SUV more affordable for the budget conscious buyers. Previously, the extra cess would add to the prices, but now basic trims prices are more affordable for anyone who desires to have the adventure of an SUV without spending a lot of money.
The mid-tier models, such as the Comfort and Technology packs, which offer a touch-screen infotainment, climate control and connected car features, have also enjoyed the benefits of the GST reduction. They too had been subjected to hefty tax rates earlier because of the bracket they belonged to, but now they too fetch attractive prices.
Premium variants with panoramic sunroof, premium upholstery, ADAS safety features, large alloy wheels and a lot more were once considered to be overpriced due to excessive tax percentage. But they are more affordable than ever with the new 18 per cent GST rate. This means customers can now opt for premium attributes without the tax burden of higher percentage rates.
Sample Calculation of Road Price with New GST Tax
Let’s take an example to see the effect of the new GST on the final prices. Let’s say a mid variant of the XUV 3XO has a base price of ₹10 lakh (before taxes). It would have been 28 percent plus cess under the old rule, on which ex-showroom price would have been far higher.
In the new scheme, only 18 percent GST is levied which adds up to ₹1.8 lakh. Which brings us to an ex-showroom price of ₹11.8 lakh. Additional charges are levied after finalizing the ex-showroom price. These are registration charges and are approximately 8 to 12 per cent of ex-showroom price which is around 1.18 lakh.
Insurance and some other miscellaneous processing fees may add as much as Rs 50, 000. Bear with me and the total on road price for this particular variant works out to be close to Rs 13.5 lakh. Had the same variant been purchased under the yesteryear system, the on-road price could have been easily higher by Rs 1 to Rs 1.5 lakh.
Luxury enhancements to boost value
The Mahindra XUV 3XO has been crafted for not just good looks and affordability, but also to pack in lofty features for every variant. Even at the lower levels, it has basics such as advanced safety features, two airbags, ABS+EBD, and an impressive build quality. Middle variants come with added convenience of automatic climate control, larger infotainment screen and enhanced connectivity.
Luxury Features on More Affordable Cars The mid- and high-end trims come so packed with options they make the bland base versions seem like no-option shells. The panoramic sunroof impart spacious and an opulent look inside the car. The interior features premium-grade materials and leather trim.
Lane departure warning, adaptive cruise control, and collision alert are just some of the advanced driver assistance features designed to keep you safe on the road. These luxury features that were earlier considered a bit expensive due to the steep taxation now seem more realistic owing to the slashed GST slab.
Value for Money Edge
The GS is a strong value buy The new GST regime has made XUV 3XO a even more enticing option in the segment. The base variants are affordable and Practical for first-time SUV buyers or small families. The mid variants of Mahindra Scorpio caters to urban class people seeking for style and technology. For those with a taste for luxury, safety & high-tech toys, the top trims now offer even more bang-for-the-buck without taking things too far.
As a result, the XUV 3XO has something for everybody. Coupled with Mahindra’s robust after sales service network, sturdy build and safety record, the value proposition has far greater sense now. The new GST rate has changed this, giving ownership cost that is friendlier on wallet without compromising on the feel of luxury.
Conclusion
The Mahindra XUV 3XO is a cleverly packaged compact SUV that feels even more appealing with the revised GST slab. Previous buyers had to pay 28 per cent GST plus cess, but now with only 18 per cent GST levied, the car has become affordable for all variants.
And this not only cuts down the ex-showroom price, but also directly brings down the final on-road price. This means they can charge more for all the bells and whistles and the better safety and comfort without putting too much strain on the wallet.
Whether the base trim or full balloon top model, the XUV 3XO is a value-loaded unit at any level. With its aggressive pricing, up-market features, and Mahindra’s trusted brand name, the SUV is bound to be among the top sellers in the compact SUV category.