Goods and Services Tax (GST) has cast a positive impact on motorcycles below 350cc, including Indian motorcycle manufacturer TVS Motor, which has reduced prices of its model range by up to Rs 4,150. TVS has said that the dealers will be given suitable assistance on the opening stock as on July 1, 2017, purchased by them at a pre-GST price. The onset of GST saw several manufacturers slashing prices on their vehicles, while some extended GST benefits even before the uniform tax was made official. Bajaj was the first to extend pre-GST benefits to its customers, followed by Royal Enfield, UM Motorcycles and TVS.
“The price reduction is in the range of Rs 350 to Rs 1,500 in the commuter segment. In the premium segment products, the prices are reduced up to Rs 4,150 depending on each state,” TVS Motor Company said in a statement.
Following is an estimate of price cuts on TVS motorcycles based on tax percentage. It should be noted that these prices may differ according to variants, the state of purchase and other aspects. All prices are ex-showroom.
Star City Plus
Pre GST: Rs 51,888
Post GST: Rs 49,812
Apache RTR 200 4V
Pre GST: Rs 1,05,609
Post GST: Rs 1,01,304
Pre GST: Rs 59,286
Post GST: Rs 56,914
Hero MotoCorp has also announced its decision to cut prices by up to Rs 1,800 post GST. The actual benefit varies from state to state, depending on pre- and post-GST rates, Hero clarified.
Other motorcycle brands have also announced such price cuts. Read all about them here.
Overall, there has been a reduction in prices for motorcycles under 350cc, but a price hike for motorcycles over 350cc. These price cuts and hikes, however, will further be affected by manufacturer's decision to pass down the benefits to customers post considering price changes in raw material and parts.