Two-Wheeler Giants Slash Prices Following GST Rate Cut
Leading two-wheeler manufacturers in India have announced significant price reductions after the GST Council lowered the tax rate on two-wheelers under 350cc to 18%. Royal Enfield is cutting prices by up to Rs 22,000 across its 350cc range. TVS Motor Company is implementing price cuts up to Rs 22,000 on its ICE portfolio. Honda's Dio 125 will see a Rs 6,222 decrease, while Suzuki's Burgman Street 125 will be reduced by Rs 6,444. This industry-wide price reduction is expected to boost demand in the two-wheeler segment, particularly for entry-level and mid-range models.
*this image is generated using AI for illustrative purposes only.
In a significant move that's set to shake up the Indian two-wheeler market, major manufacturers have announced substantial price reductions following a recent Goods and Services Tax (GST) rate cut. The GST Council's decision to lower the tax rate on two-wheelers with engine capacity below 350cc to 18% has prompted industry leaders to pass on the benefits to consumers, making motorcycles and scooters more affordable across the board.
Royal Enfield Leads the Charge
Royal Enfield, the iconic brand known for its classic designs and powerful engines, has taken a bold step by announcing price cuts of up to Rs 22,000 across its entire 350cc motorcycle range. This move will apply not only to motorcycles but also to service, apparel, and accessories.
B Govindarajan, Managing Director of Eicher Motors Ltd. and Chief Executive Officer of Royal Enfield, expressed enthusiasm about the development: "The Government of India's latest GST reform will not only make motorcycles under 350cc more accessible but will also excite the first-time buyers. Royal Enfield is delighted to announce that we are passing the full GST benefit of the price revision directly to our consumers, opening the world of Royal Enfield to an even larger community of riders."
Industry-Wide Price Reductions
The ripple effect of the GST rate reduction is being felt across the two-wheeler sector:
TVS Motor Company: Implementing price cuts of up to Rs 22,000 across its internal combustion engine portfolio. Notable reductions include:
- TVS Jupiter 125: From Rs 77,000 to Rs 70,667
- NTORQ 125: From Rs 85,000 to Rs 77,778
Honda: The popular Honda Dio 125 will see a price decrease of Rs 6,222, bringing its new price to Rs 65,778.
Suzuki: The Suzuki Burgman Street 125 will experience a reduction of Rs 6,444, with its new price set at Rs 75,556.
Impact on the Market
This widespread price reduction is expected to stimulate demand in the two-wheeler segment, particularly in the sub-350cc category. The move comes at a crucial time when the industry is looking to boost sales and cater to the evolving needs of Indian consumers.
The price cuts are particularly significant for entry-level and mid-range models, making them more accessible to a broader range of customers. This could potentially lead to increased sales volumes and market penetration for manufacturers.
Looking Ahead
As the new pricing structure takes effect, industry observers will be keenly watching its impact on sales figures and market dynamics. The reduced prices could potentially accelerate the shift towards personal mobility solutions, especially in urban and semi-urban areas where two-wheelers are a popular mode of transportation.
The move also aligns with the government's efforts to boost the automotive sector and provide relief to consumers. As manufacturers adjust to the new tax structure, it remains to be seen how this will influence their product strategies and market positioning in the coming months.
For consumers, this presents an opportune moment to consider purchasing a new two-wheeler, with a wide range of models now available at more attractive price points across various brands.
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