We are just days away from the GST implementation taking place. With the entire country abuzz with speculations on possible car and bike price drop after GST, many prospective new car and bike buyers have decided to postpone their purchase to post-GST days. Regulars to Car Blog India should be aware of our post on impact of GST on bike prices. Now, we’ve come up with details on discounts, price cuts and other offers being provided to prospective new bike buyers ahead of GST implementation. Manufacturers have resorted to offering price cuts and other offers in order to lure all those who postponed their new bike purchases to next month. Here’s all the info on the new bike price drop after GST announcement in India.
The GST rate for two-wheelers (bikes, scooters and mopeds) is 28 percent. However, there’s a 3 percent cess on two-wheelers with engines displacing more than 350cc. On quick calculations, it’s pretty easy to see that most bikes, especially ones with below-350cc engines, won’t see a significant rise or drop in the prices. However, the 3 percent cess will affect manufacturers like KTM, which might ultimately decide to increase the prices to offset the loss in their profit margins. Following are the effects on bike price after GST announcement.
Bike Price Drop After GST Announcement
Thanks to many prospective buyers deciding to postpone their new bike purchases to next month, many companies have witnessed a sudden drop in demand of new bikes. Bajaj Auto and Royal Enfield are the first two to pass on GST benefits to the customers. With GST coming into action next month, the latest price drop is effective only till the end of this month. Here are details on the discount offers and bike price drop after GST announcement.
GST IMPACT – Bajaj Bike Price Drop
Bajaj Auto is offering discounts and price cuts of upto Rs 4,500 on its complete range of bikes. Of course, the exact amount of price drop depends on the model and the State of purchase.
Speaking on the price cut, Eric Vas, President, Motorcycle Business, Bajaj Auto said “As a responsible corporate, Bajaj Auto is happy to pass on the price saving accruing out of GST to its customers. With the GST implementation just around the corner we felt that it would be appropriate to pass on this significant savings to customers. Bajaj Auto is proud to be the first and only motorcycle company in India, to offer post GST reduced prices to customers even before the implementation date. Customers no longer need to wait for 1st July to buy their desired Bajaj Motorcycle.”
The current discount offer by Bajaj came into effect on 14th June and is available till 30th June 2017.
GST IMPACT – Royal Enfield Bike Price Drop
Royal Enfield is also passing benefits to customers ahead of GST implementation. The company has made an official announcement regarding extension of GST benefits on the on-road price of its bikes from 17th June onwards.
Speaking about the same, Rudratej (Rudy) Singh, President Royal Enfield said, “Royal Enfield welcomes the Goods and Services Tax (GST) reform initiative by the Government of India. We believe that GST will transform the way business is done in India thus benefitting the economy and our customers. Royal Enfield is preemptively extending the GST benefits to its customers and is ready to implement the on-road price revision on purchases beginning 17th June 2017 on products where applicable. We are committed to delivering customer satisfaction and giving authentic, pure motorcycling experience to our community and customers”
It’s worth a mention here that several Royal Enfield 350 models, all of which have a 346cc heart, won’t be affected by the 3 percent additional cess on bikes with engine displacing more than 350cc.
GST IMPACT – UM Motorcycles Announces Pre-GST Benefits
UM Lohia Two Wheelers Pvt. Ltd has announced the extension of pre-GST benefits to customers. So, basically, prospective UM Motorcycles customers no longer need to wait for 1st July to buy their desired UM Motorcycle. Speaking on this, Mr. Rajeev Mishra, CEO, UM Lohia Two Wheelers Pvt. Ltd said, “UM Motorcycles welcomes the Goods and Services Tax (GST) initiative by the Government of India. We believe that it will benefit the economy overall and thus our customers too. We have decided to preemptively extend benefits
before the GST is implemented. We are committed to delivering customer satisfaction and
giving authentic, pure motorcycling experience to our community and consumers.”
GST IMPACT – Electric Bike Price Rise After GST
Electric bikes are expected to get a significant price rise after GST implementation. The e-bikes will come under the 12% GST rate. Also, they will no longer benefit from any tax incentive. This comes as quite a big blow to various manufacturers who have plans to introduce electric two-wheelers.
GST IMPACT – Rise in Bike Maintenance Price
The biggest change that is expected is on the service side of things. While the proposed GST rate on spares is 28 percent, the service side will see an increase in rate by 3 percent. Basically, this is likely to lead to higher labor charges and hence, an increase in servicing costs of your bike.
What do you have to say about the Bike Price Drop After GST? Do you plan to buy a new bike before GST gets into effect? Or do you plan to purchase a new bike after July 1? Do let us know by commenting below.
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