GST Impact: Two Wheeler Manufacturers Pass On GST Benefits To Customers

In light of the GST (Goods and Services Tax) implementation, auto manufacturers have been prompt in announcing benefits for customers across their respective models. While luxury carmakers made the first move of passing announcing discounts, mass market manufacturers too joined the list, slashing prices across different and popular models. Now, two wheeler makers Bajaj Auto and Royal Enfield are the latest to pass on GST benefits to customers. With the new GST norms set to be active from 1st July 2017, the benefits will be available till the end of this month. Here are the discounts and offers available as part of the GST discounts.

(Bajaj Dominar)

Bajaj Auto

Bajaj Auto has said that it will be offering discounts of up to Rs. 4,500 on its entire range of motorcycles before GST is actually implemented from 1 July 2017. The amount of savings on the bikes purchased, depends on the model which has been bought and the state in which the bike is purchased.

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."

(Bajaj Pulsar NS200)

Once the Goods and Services Tax is implemented across India, the benefits of the GST effect for the customers will be different in each state and on each model. Bajaj will also be educating the customers about the same at their authorised dealerships. The announcement of GST could be beneficial for two-wheeler manufacturers in the long run. The savings on motorcycles will be available from 14th June till 30th June 2017. Of course, one needs to understand that these benefits have come in only after Bajaj recently hiked the prices of all its models in India which include the Pulsar range and the Dominar as well.

Royal Enfield Classic 350 Redditch Blue

Royal Enfield

Royal Enfield is the second motorcycle maker to announce that it will be passing on benefits to customers. The company has announced that it will be extending the GST benefits on the on-road price of its bikes starting from 17th June itself. This is ahead of the 1st July deadline when the norms will be officially implemented.

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"