Bajaj Auto cut down their prices by Rs 4,500 last week, followed by Royal Enfield who also announced a cut on selected models. Two-wheeler companies are eager to cover up for the loss in volumes and the substantial hit on margins experienced during the transition to BS-IV from BS-III on 1 April.
A senior industry executive stated,“It was only after the Finance Ministry came out with a detailed list of items falling under specified tax brackets that we got an idea about the impact of the final rates. GST not only impacts us alone but it impacts our vendors, too. There will be a net tax gain or loss based on this calculation.”
UM Motorcycles are also ready to offer GST benefits their Renegade Commando and Renegade Sports S motorcycles. The price of the UM Renegade Commando in India drops by Rs 5,684 and the Sports S gets a price reduction of Rs 4,199. As these two bike are fitted with 279-cc engines, they are applicable for GST-based discounts, which benefits bikes up to 350 cc.
Rajeev Mishra from UM Lohia Two Wheelers Pvt Ltd, said, “UM Motorcycles welcomes the Goods and Services Tax (GST) initiative by the Government of India. We believe that it will benefit the economy overall and thus our customers too. We have decided to pre-emptively extend benefits before the GST is implemented. We are committed to delivering customer satisfaction and giving authentic, pure motorcycling experience to our community and consumers.”
Story: Richie Fernandes