GST Prices: Honda Passes GST Benefits Up To Rs. 5,500 To Customers

Honda Motor & Scooter India (HMSI) has announced that it will be passing GST benefits by up to Rs. 5,500 to customers starting from 1st July 2017. As per the new GST regime, Honda motorcycles and scooters under 350 cc now fall under the 28 per cent tax slab, saving up to 2.2 per cent over the previous taxes.

By Sameer Contractor

1 mins read

Published on July 4, 2017

Highlights

Honda two-wheelers will be offering GST benefits up to Rs. 5,500
Honda motorcycles and scooters under 350 cc now fall under the 28% slab
The Honda CB Hornet 160R is now cheaper by Rs. 132

India's second largest selling two wheeler manufacturer, Honda Motor & Scooter India (HMSI) has announced that it will be passing GST benefits by up to Rs. 5,500 to customers starting from 1st July 2017. In a statement, HMSI - Senior Vice President - Sales and Marketing, Yadvinder Singh Guleria said, "Honda is passing on the GST benefit applicable in most of the states to our valued customers who now get significant savings going up to Rs. 5,500 depending on the model and the state of purchase." As per the new GST regime, Honda motorcycles and scooters under 350 cc now fall under the 28 per cent tax slab, saving up to 2.2 per cent over the previous taxes. The company's bigger bikes though will attract 1 per cent of additional tax. The bike maker's commuter range has seen a price cut in most markets, while prices have gone up as well in certain states, where the pre-GST taxes were low. Under the new regime, the Honda Activa-i now costs Rs. 48,059, as against the previous price of Rs. 47,913. Similarly, the Honda Activa 4G has seen a marginal hike of Rs. 50,846, as against the original price of Rs. 50,730. The Honda CB Hornet 160R is now cheaper by Rs. 132 and starts at Rs. 81,863 in Delhi (all-prices, ex-showroom Delhi). In terms of sales, Honda recorded a positive growth in June 2017 while also welcoming the new GST regime. The company recorded a growth of 4 per cent with a total of 444,713 units (domestic + exports) sold in June 2017, as against the 427,222 units sold in June 2016. The company's domestic business grew by 2 per cent with 407,979 units sold last month. In comparison, Honda's ex-partner and rival Hero MotoCorp posted overall much better numbers retaining its numero uno position with over 6 lakh units sold last month. HMSI scooters sold 271,017 units in June 2017, as compared to 265,361 units sold during the same period last year. The company currently commands a 26 per cent market share in the country and is currently the second largest two wheeler seller in the country. With respect to motorcycle sales, Honda sold 145,481 units last month, growing by 2 per cent on a year-on-year basis. The Activa maker's exports too saw an impressive growth last month up from 19,243 units shipped in June 2016 to 27,215 units shipped last month.