Mahindra & Swaraj Tractor Prices After GST 2.0 | Expected Price Drop & New Prices in 2025

Sep 8, 2025

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Explore the latest Mahindra and Swaraj tractor price updates following GST 2.0. See expected reductions, new ex-showroom prices, and why 2025 is ideal for buying.

The GST 2.0 overhaul has brought a significant relief to the tractor segment in India. Most notably, the GST rate for tractors has been slashed from 12% to just 5%, while parts and tyres now attract a much lower rate as well. These changes position both Mahindra and Swaraj to pass substantial savings onto farmers, making 2025 a great year to invest in mechanization.

GST Tax Impact on Tractors

Item Category	Previous GST Rate	New GST Rate	Efficiency Gain
Tractors & Agricultural Vehicles	12%	5%	Major cost reduction (nearly 7%)
Tractor Tyres & Components	18%	5%	Reduced maintenance costs

This sweeping reduction not only strengthens affordability but also boosts demand and overall rural mechanization.

Mahindra Tractor Price Outlook

Mahindra, being the market leader in the tractor segment, is expected to reflect these GST benefits through substantial price drops across its lineup. Based on industry consensus:

Estimated Price Reduction: ₹50,000 to ₹1,00,000+ per unit, depending on model and HP segment.
Expected New Price Range: Likely a 6–8% drop from pre-GST prices.

This realignment improves margins and positions Mahindra as a key beneficiary of the revised tax structure.

Swaraj Tractor Price Updates

Swaraj offers a wide range of models, from compact mini-tractors to high-HP heavy-duty units. Here’s a breakdown of current prices and expected movement post-GST adjustment:

Model Name	Pre-GST 2.0 Price (₹ Lakh)*	Estimated New Price (₹ Lakh)*	Expected Drop (₹ Lakh)
Swaraj Code (11 HP)	2.60	2.45	↓ 0.15
Swaraj 735 FE (40 HP)	5.95 – 6.15	5.65 – 5.90	↓ 0.25
Swaraj 742 XT (45 HP)	6.50	6.20	↓ 0.30
Swaraj 744 XT (50 HP)	7.39 – 7.95	7.00 – 7.55	↓ 0.40

*Ex-showroom price estimates.

Why These Reductions Matter

Lower Entry Barrier: Smaller farmers can now afford tractors earlier, accelerating farm productivity.
Reduced EMI Pressure: With lower upfront costs, financing becomes more accessible.
Affordable Future Upgrades: Lower component GST translates to cheaper servicing and tyre replacements.
Boost to Rural Mechanization: Makes purchasing decisions more viable amid a lower tax regime.

Farm-Friendly Buying Tips

Check your regional on-road price, as RTO and insurance still apply.
Leverage GST-aware financing—lower mismatch helps secure better loan terms.
Time your purchase during off-season or festive offers for additional discounts.
Validate dealer stock of pre-GST models to possibly negotiate further savings.

Conclusion

With GST slashed on tractors and their components, both Mahindra and Swaraj are set to offer significantly reduced prices in 2025. This is a game-changer for Indian agriculture, providing affordable mechanization options. Whether you’re looking at the nimble Swaraj Code, the sturdy 735 FE, or Mahindra’s premium line-up, the new pricing makes upgrading more practical than ever.