Vikram Kasbekar, Chief Executive Officer, Hero MotoCorp, said “…more than half of the Indian households use two-wheelers for their daily needs, making it critical for mass mobility. The timing is opportune and ahead of the festive season, making two-wheelers more affordable and accessible for India’s largest consumer base, while giving a strong demand push. By passing on the full GST benefit to customers, Hero MotoCorp reaffirms its commitment to enabling mobility, empowering families, and supporting the vision of ‘Make-in-India’.”
Under the new GST regime, ICE (internal combustion engine) two-wheelers under 350cc will attract an 18 percent tax instead of 28 percent, while electric vehicles continue at 5 percent. In case of two-wheelers above the 350cc engine category, the GST Council increased the GST rates to 40 percent, compared to their earlier 28 percent GST and 3 percent cess.
TVS Motor Company, Bajaj Auto, Yamaha and Royal Enfield have also announced passing on the full benefit of the recent GST rate reduction on internal combustion engine (ICE) vehicles to their customers. Bajaj Auto announced that its two-wheelers will see price cuts of up to Rs 20,000, while three-wheelers will become cheaper by up to Rs 24,000.
Royal Enfield said that its 350 cc portfolio will see a price reduction of up to Rs 22,000. This will make its models such as Classic 350, Bullet 350, Hunter 350 and Meteor 350 more attractive to buyers.