Bajaj Auto on Monday announced a reduction in prices of its motorcycles by up to Rs 4,500 with immediate effect to pass on the expected benefit of GST to customers.
Taxes on motorcycles shall reduce in most states with the implementation of the Goods and Services Tax (GST) from 1 July 2017, although benefits vary for each state, and differ across motorcycle models, Bajaj Auto said in a statement.
The company has decided to offer post-GST reduced prices to customers with immediate effect from 14 June 2017 itself, it added. With taxes on two-wheelers coming down from 30% to 28% next month onwards, we expect the likes of Hero, Honda to join the discount wagon as well.
Bajaj Auto sells a range of motorcycles starting from entry level CT 100 priced at Rs 35,183 to top-end Dominar 400 tagged at Rs 1.53 lakh (ex-showroom Delhi).
Motorcycles with engine capacity of over 350 cc will attract an additional cess of three percent.
Already, automobile manufacturers such as Ford India, Audi, BMW and Mercedes Benz have reduced prices of their vehicles between Rs 10,000 and Rs 10 lakh to pass on the benefits of GST in June, ahead of its implementation.
Companies have found it difficult to push sales this month with customers waiting for GST implementation in expectation of prices to come down.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)