TVS Motor to Pass Full GST Rate Cut Benefits to Customers
TVS Motors announces it will transfer the complete benefit of reduced GST rates on ICE vehicles from 28% to 18% directly to customers, effective September 22, 2025. This decision follows recent GST Council reforms. The move is expected to result in significant savings for consumers across TVS Motor's ICE product range. Electric vehicles will continue to enjoy a 5% GST rate. The company's CEO, KN Radhakrishnan, praised the government's decision as transformative and aligned with the vision of Viksit Bharat 2047.

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TVS Motors , a leading two and three-wheeler manufacturer, has announced its decision to transfer the complete benefit of reduced Goods and Services Tax (GST) rates directly to its customers. This move comes in response to recent reforms introduced by the GST Council, which has lowered the tax rates on Internal Combustion Engine (ICE) vehicles from 28% to 18%.
Significant Savings for Customers
The reduction in GST rates is expected to result in substantial savings for consumers across TVS Motor's ICE product portfolio. The company has confirmed that these benefits will be available to customers starting September 22, 2025, enhancing the accessibility of their ICE products.
Impact on Electric Vehicles
It's worth noting that electric vehicles remain unaffected by this change and will continue to enjoy the concessional GST rate of 5%.
Management's Perspective
KN Radhakrishnan, Director & CEO of TVS Motor Company, commented on the development, stating, "The GST rate rationalisation is a bold and transformative move that will accelerate consumption across society. We sincerely thank the Government of India for these progressive reforms." He further added, "The Government's consistent efforts to boost growth and strengthen the middle class's spending power are vital steps towards realising the Hon'ble Prime Minister's vision of Viksit Bharat 2047."
Commitment to Customer Communication
TVS Motor has pledged to undertake extensive communication measures to inform customers about the benefits accruing from the GST rate reductions. This initiative aligns with the company's commitment to providing mobility solutions that are trusted, reliable, and offer an unparalleled user experience.
Company Overview
TVS Motor Company, with its century-old legacy, operates four state-of-the-art manufacturing facilities in India and Indonesia. The company has a strong global presence, exporting its products to 80 countries. TVS Motor is recognized for its commitment to quality, having won the prestigious Deming Prize, and consistently leading in J.D. Power IQS & APEAL surveys and Customer Service Satisfaction Survey.
This move by TVS Motor to pass on the full benefit of GST rate cuts demonstrates the company's dedication to its customers and its support for the government's initiatives to boost economic growth and consumption in the automotive sector.
Historical Stock Returns for TVS Motors
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-0.56% | +0.45% | +17.84% | +54.60% | +23.72% | +664.87% |