Thanks to GST, Hero MotoCorp will marginally reduce pricing of its two-wheelers as all of them have displacements below 350 cc
Amidst confusion regarding the effect of Goods and Services Tax (GST), two-wheeler manufacturers are ready to pass on the benefit of the new tax system to the customers. Several two-wheeler manufacturers in the country have already announced discounts across their range of products. Hero MotoCorp too is ready to reduce the pricing of its products from 1st July.
Being the kind of the commuter segment in Indian two-wheeler market, Hero MotoCorp has a range of products that are powered by engines with displacement of below 350 cc. According to the new tax structure, these two-wheelers will draw 28% tax incidence compared to the pre-GST 30%. This means, the customers are about to see marginal price reduction.
Hero MotoCorp has an array of popular products in its portfolio that include commuters like Splendor series, Passion, Glamour and premium model Karizma ZMR too. All these products come powered by engines below 350 cc, which means all the Hero MotoCorp two-wheelers will be marginally cheaper after the GST rolls out on 1st July, 2017.
While the two-wheelers with sub-350 cc engines will be cheaper because of the new tax system, the motorcycles with engines above 350 cc will be pricier as these will draw a 3% cess over and above the 28% GST. Hero being already the leader in the Indian two-wheeler market thanks to its range of commuter products; is expecting more market share after the GST, as the reduced pricing will help it to fetch more sales figure.
The company is yet to announce the reduced pricing of its products, but expect the motorcycles and scooters from the homegrown two-wheeler manufacturer to be cheaper by around 2%-5%. The company is currently working on two products that will be launched in the domestic market by September this year ahead of the festive season and these would include a motorcycle and a scooter.
Hero Splendor iSmart 110 Gallery