GST IMPACT: Manufacturers Slash Bike Prices!

So the GST implementation has finally taken place. With the entire country abuzz with news on cars and bike price drop after GST, many prospective new car and bike buyers have decided to purchase their favorite machine in the post-GST days. Regulars to Car Blog India should be aware of our post on impact of GST on bike prices. Now, we’ve come up with details on discounts, price cuts and other offers being provided to prospective new bike buyers due to GST implementation. Manufacturers have decided to offer price cuts in after having aligned to the new tax structure. Here’s all the info on the new bike price drop after GST implementation in India.

The GST rate for two-wheelers (bikes, scooters and mopeds) is 28 percent. However, there’s a 3 percent cess on two-wheelers with engines displacing more than 350cc. On quick calculations, it’s pretty easy to see that bikes with below-350cc engines won’t see a rise in their prices. However, the 3 percent cess will affect manufacturers like KTM, which might ultimately decide to increase the prices to offset the loss in their profit margins. Following are the effects on bike price after GST announcement.

Also See – How Will GST Affect Car Prices? | Pre-GST Discounts & Offers on Cars!

Bike Price Drop After GST

Many companies witnessed a sudden drop in demand of new bikes during days leading to GST implementation. Hence, manufacturers like Bajaj Auto and Royal Enfield decided to pass on GST benefits ahead of its implementation! With GST coming into action, there’s finally a price drop on most motorcycles from almost every manufacturer. Here are details on the discount offers and bike price drop after GST announcement.

GST IMPACT – Bajaj Bike Price After GST

Bajaj Bike Price Drop – There’s a price drop on Bajaj bikes in India. Prices of the Pulsar NS 200 have gone down by almost ₹ 1000. Prices of Pulsar 220F have dropped by around ₹ 700, whereas Bajaj Pulsar RS 200 has seen a price drop of roughly ₹ 1100. Prices of the Dominar, which comes with a 373cc engine, have gone up a fair bit. It may be noted here that bikes with engine size of more than 350cc now attract an additional 3% cess over 28% GST. Hence, the Dominar 400 has become costlier by ₹ 2,054 for the non-ABS model and ₹ 2,214 for the ABS version. The non-ABS version now costs ₹ 141,054 (ex-showroom, New Delhi) and the ABS model costs ₹ 155,215 (ex-showroom, New Delhi).

Here’s Bajaj Bike Price List After GST Implementation –

GST IMPACT – Honda Bike Price After GST

Honda Bike Price Drop – While the Honda CB Hornet has got cheaper by ₹ 800, the Activa has seen a price increase of ₹ 100. The Navi has seen a price drop of ₹ 400 as well. Here’s Honda Bike Price List After GST (all prices are ex-showroom, New Delhi). Also See- Post-GST Price of Honda Activa

GST IMPACT – Hero Bike Price After GST

Hero Bike Price Drop – Hero MotoCorp, India’s highest selling bike manufacturer, has decided to reduce prices of its entire motorcycle range due to GST implementation. Hero bikes are now cheaper by up to Rs 1,800. Price reduction on entry-level motorcycles by Hero is around Rs 400. It may be noted here that the actual price cut on Hero bikes varies from state to state.

GST IMPACT – Royal Enfield Bike Price After GST

Royal Enfield sells bikes in both above- and below-350cc segments. Now, under the new norms, bikes with engine size below 350cc attract a lower tax than bikes with engine size over 350cc. Hence, while some of the Royal Enfield bikes have seen a price drop, there are many whose prices have gone up.

GST IMPACT – Yamaha Bike Price After GST

Yamaha Bike Price Drop – India Yamaha Motor Pvt. Ltd announced its post-GST (Goods and Services Tax) prices on July-1. The announcement comes in the backdrop of nation-wide implementation of GST. Here’s the revised price list (All prices are ex-showroom, New Delhi)-

GST IMPACT – KTM Bike Price After GST

KTM Bike Price Increase – KTM India has decided to increase prices of all its motorcycles due to GST implementation. While it was expected to reduce prices of its 200cc and 250cc bikes, the manufacturer has increased prices of all its models. Here’s the KTM Bike Price List After GST

GST IMPACT – UM Bikes Price After GST

UM Bike Price Drop – UM Renegade Commando and Sports S have witnessed a price drop due to GST implementation. While the UM Sports S gets a price drop of ₹ 4,200, the UM Commando gets a price cut of ₹ 5,700. Here’s the UM Bikes Price List After GST implementation. (All prices are ex-showroom, New Delhi).

GST IMPACT – TVS Announces Price Cut

TVS Motor Company has announced its decision to reduce prices of its products post GST implementation. Starting July 1, 2017, TVS bikes in India are expected to get significantly cheaper. The exact model-wise price cut will differ from state to state. Speaking on this, Mr KN Radhakrishnan, President and CEO, TVS Motor Company, said,”We are very optimistic about GST which is a landmark reform. It will bring in a lot of ease in doing business. We will be passing on the benefits to our customers.”

GST IMPACT – Indian Motorcycle Price After GST

GST IMPACT – Electric Bike Price Rise After GST

Electric bikes are expected to get a significant price rise after GST implementation. The e-bikes will come under the 12% GST rate. Also, they will no longer benefit from any tax incentive. This comes as quite a big blow to various manufacturers who have plans to introduce electric two-wheelers.

GST IMPACT – Rise in Bike Maintenance Price

The biggest change that is expected is on the service side of things. While the proposed GST rate on spares is 28 percent, the service side will see an increase in rate by 3 percent. Basically, this is likely to lead to higher labor charges and hence, an increase in servicing costs of your bike.

What do you have to say about the Bike Price Drop After GST? Do you plan to buy a new bike before GST gets into effect? Or do you plan to purchase a new bike after July 1? Do let us know by commenting below.