Honda to Pass On GST Benefits to Customers with Reduced Pricing

2017 Honda CB Unicorn 160

Honda products to be cheaper by 3%-5% across the country with adoption of GST; other brands too expected to reduce pricing

Honda Motorcycle and Scooter India Pvt Ltd is ready to reduce pricing of its products from 1st July to pass on the benefits of the Goods and Services Tax (GST). While exact price reduction amount is still unknown, the two-wheeler manufacturer is likely to reduce pricing of its products by 3%-5% across the country. Interestingly, Bajaj Auto and Royal Enfield have already reduced pricing of its products.

Other brands like Hero MotoCorp, TVS Motors, Yamaha and Suzuki are also expected to slash price of its products with adoption of GST. Initially it was thought that with the GST rolled out, price of the two-wheelers will go up. Now, the manufacturing companies and their parts vendors are working to calculate the exact impact of the new tax system. However, amid that this price reduction will surely lure more customers towards buying two-wheelers.


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HMSI says the price cut will vary from state to state and product to product. It also confirmed that the benefits of new tax structure will be passed on to the customers. Last week Bajaj Auto reduced pricing of its products by up to Rs. 4,500. Royal Enfield too announced price cut on its select models. As it seems, the two-wheeler industry is going to get a boost in sales after the roll out of GST, but that will be limited to the lower category models only.

Under the new tax system, motorcycles with 350 cc or bigger engines will see a 3% cess over and above the 28% GST. This will certainly impact the pricing of this middleweight category premium motorcycles from brands like Bajaj, KTM, Royal Enfield. Apart from the manufacturers, parts vendors too are expected to be impacted by the GST.

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Now, the dealers are rushing to clear out their stock with various discounts as the pre-GST unsold stock will be unproductive for them. The discounts on the products are ranging between 5%-15%.

Source: Moneycontrol