CHENNAI: Two-wheeler maker TVS Motor Company and Royal Enfield have decided to pass on the expected benefit of Goods and Services Tax (GST) to customers by lowering prices of their vehicles.
TVS Motor President and CEO K N Radhakrishnan said GST would “bring a lot of ease in doing business and we will be passing on the benefits to our customers”.
Niche bike maker Royal Enfield has reduced prices of its models up to Rs 2,300 (on-road Chennai) while TVS Motor did not disclose the quantum of price cut on its product portfolio.
Royal Enfield, which is a part of Eicher Motors, currently sells a range of motorcycles, including Bullet, Classic and Thunderbird.
“The slab for reduction is expected to be betweenRs 1,600 and Rs 2,300 on-road Chennai. The reduced slab shall vary from state to state,” a company spokesperson said.
Taxes on motorcycles are expected to reduce in most states with the implementation of the GST from July 1, although benefits vary from state to state.
Under GST, most of the two-wheelers will attract a tax rate of 28 per cent, lower than total tax incidence of around 30 per cent at present. Motorcycles with engine capacity of over 350 cc, however, will attract an additional cess of three per cent.
Bajaj has already reduced prices of its range of motorcycles by up to Rs 4,500 while UM Lohia Two Wheelers has cut prices by up to Rs 5,700.