Mahindra & Mahindra Ltd. reported over 20% growth in both production and sales in the third quarter of the current financial year, as reduction in GST rates sustained demand even after the festive season.
Total production increased by 25% year-on-year to 68,992 units in the October-December quarter, according to provisional business updates disclosed to stock exchanges on Friday.
Sales jumped 27% to 85,501 units while exports declined 9% to 2,849 units.
The government in September implement revised rates under the GST 2.0 reforms which significantly reduced tax on cars.
The revised GST structure brought notable changes across several Mahindra models. The company had announced it will pass on the full GST benefits to customers across its entire ICE SUV portfolio.
For the Bolero/Neo, the total indirect tax burden dropped from 31% GST plus cess to a new uniform rate of 18%. The XUV3XO saw similar revisions: the petrol variant moved from 29% to 18%, while the diesel variant fell from 31% to 18%.
The Thar lineup reflected mixed adjustments — the Thar 2WD (diesel) shifted from 31% to 18%, whereas the Thar 4WD (diesel) saw a reduction from 48% to 40%.
Other models with 48% GST plus cess, including the Scorpio Classic, Scorpio‑N, Thar Roxx, and the XUV700, also transitioned to a lower consolidated rate of 40% under the updated GST framework.
Brokerage firm Motilal Oswal expects aggregate auto demand across its coverage universe to grow 17% YoY in the third quarter, with healthy performance across all segments.
According to Federation of Automobile Dealers Associations, India’s auto retail industry enters 2026 on firm footing, backed by rural demand, affordability gains from GST 2.0, and steady consumer sentiment.
Shares of Mahindra & Mahindra settled 1.3% lower at Rs 3,677 on the BSE, ahead of the announcement, compared to a 0.7% decline in the benchmark Sensex. The stock is up 18% on a 12-month basis.
Mahindra, a leading SUV manufacturer, will announce its third quarter earnings on Feb. 11.
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