GST Impact on bikes: Suzuki lowers prices on mass market motorcycles

The implementation of GST or Goods and Services Tax has worked in favour of motorcycles and Japanese bike maker, Suzuki has started to pass on the benefits to its potential customers

By: | Updated: July 3, 2017 6:03 PM

The advent of GST has worked in favour of the Indian automotive industry. Right from cars to two-wheelers, the new tax structure has enabled manufacturers to pass on the benefit of GST to its potential customers. Suzuki Motorcycles India Ltd has also announced that their is a price cut of two percent on models below 350 cc engine capacity. This means that the Suzuki Gixxer which retailed slightly below Rs 80,000 ex-showroom Delhi for the drum brake version, can now be purchased for Rs 77,936, ex-showroom Delhi. Scooters in the company's current lineup also witnesses this price drop and a gearless scooter like the Access 125 would now cost Rs 54,787, ex-showroom, Delhi as opposed to pre-GST price of almost Rs 56,000, ex-showroom Delhi.

Along with this, the company posted sales figures for June 2017 and despite the apprehension of low sales, the Japanese two-wheeler manufacturer's sales figure grew by 58.6 percent in the domestic market. The company sold 33,573 units in June this year as opposed to 21,170 units in the same month last year. Although the implementation of GST will incur a minor increase of 0.8 percent. These would be of engine capacity above 350 cc and since Suzuki either has products in the 150 cc range or above 1,000 cc, the motorcycles to see a marginal increase after GST are the premium range. These include the GSX-1000 F ABS, GSX-S1000 ABS, GSX-R1000 ABS, GSX-R1000R, V-Strom 1000, Hayabusa, Intruder M1800R and the Intruder M1800R BOSS Edition. So, the Hayabusa would now cost around Rs 14,000 more which on the earlier price tag was Rs 13.88 lakh, both ex-showroom, Delhi, would barely make a difference for a buyer of such a motorcycle.

Also Read: GST impact on bikes: TVS announces price cuts up to Rs 4,150 across model range
The introduction of GST has worked mostly in favour of the Indian two-wheeler industry. Mass-market models which undoubtedly sell higher than premium offerings have witnessed a reduction. While it may not seem to be much, but, a reduction of Rs 2,000 for a mass market buyer would make a difference with regards to the on-road price, where most buyers prefer an EMI over a complete down payment of a vehicle.

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