One of the leading two wheeler manufacturers in India, Bajaj Auto has reduced the prices of its motorcycles by up to Rs 4500 to provide expected GST benefits to customers.
As Bajaj Auto stated, the Goods and Services Tax implementation from July 1, 2017, will lessen levied taxes on motorcycles in most states. However, the tax benefits on bikes will differ from state to state and model to model. So the company has made up its mind to grant GST reduce prices for the customers, affected from today, June 14, 2017.
"The savings will range up to Rs 4,500 depending on the model and the state in which the motorcycle is purchased," the statement said.
In Indian lineup, Bajaj Auto consists of a long range of motorcycles from an entry level CT100 priced at Rs 35,153 to range-topping Dominar 400 costs Rs 1.53 lakh (ex-showroom, Delhi).
Bajaj Auto President (Motorcycle Business) Eric Vas said: "With the GST implementation just round the corner, we felt that it would be appropriate to pass on this significant savings to customers."
Under GST regime, the levied tax on most of the two wheelers will be 28 percent, 2 percent lesser than the tax incidence in current scenario, is around 30 percent. While the motorcycles over 350cc engine displacement will attract an additional cess of three percent.
The manufacturers such as Audi, BMW, Mercedes-Benz and Ford India have already slashed prices of their models ranging from Rs 10,000 to Rs 10 lakh to grant GST benefits in June, ahead of its implementation in the country.
This reduction in vehicles asking rate is a part of manufacturers strategy to improve sales this month as the customers with the belief that the vehicles prices will go down post GST, are waiting for its implementation.