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GST impact: Bajaj Auto cuts prices of bikes, from CT100 to Dominar 400

LiveMint logoLiveMint 14-06-2017 PTI

New Delhi: Bajaj Auto Ltd on Wednesday announced a reduction in prices of its motorcycles—from CT100 to Dominar 400—by up to Rs4,500 with immediate effect to pass on the expected benefit of GST to customers. Taxes on motorcycles shall reduce in most states with the implementation of the Goods and Services Tax (GST) from 1 July 2017, although benefits vary for each state, and differ across motorcycle models, Bajaj Auto said in a statement.

The company has decided to offer post-GST reduced prices to customers with immediate effect from 14 June 2017 itself, it added. “The savings will range up to Rs4,500 depending on the model and the state in which the motorcycle is purchased,” the statement said.

Bajaj Auto sells a range of motorcycles starting from entry level CT100 priced at Rs35,183 to top-end Dominar 400 tagged at Rs1.53 lakh (ex-showroom Delhi). Bajaj Auto president (motorcycle business) Eric Vas said: “With the GST implementation just round the corner, we felt that it would be appropriate to pass on this significant savings to customers.”

Under GST, most of the two-wheelers will attract a tax rate of 28%, lower than total tax incidence of around 30% at present. Motorcycles with engine capacity of over 350 cc will attract an additional cess of 3%. Already, automobile manufacturers such as Ford India, Audi, BMW and Mercedes-Benz have reduced prices of their vehicles between Rs10,000 and Rs10 lakh to pass on the benefits of GST in June, ahead of its implementation.

Companies have found it difficult to push sales this month with customers waiting for GST implementation in expectation of prices to come down.

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