tvs motors Cuts Prices Of Its Two-Wheelers

Chennai-based two-wheeler manufacturer, tvs motors has announced price cuts on its two-wheelers as it looks to pass on the expected benefits of goods and services tax (GST) to buyers.

tvs motors did not disclose the details of price cuts on its product range.

tvs motor Company president and CEO K N Radhakrishnan said the GST would bring a lot of efficiency in doing business. "We will be passing on the benefits to our customers," he added.

The GST will be implemented from July 1, 2017, taxes on motorcycles is expected to decrease in most states, although benefits will vary from state to state.

Presently, the taxes on motorcycles is at 30 percent, with GST, the taxes on bikes will attract 28 percent, lower than the current tax structure. However, motorcycles with engine capacity more 350cc will attract an additional cess of 3 percent.

Bajaj Auto, Royal Enfield and UM Lohia have announced price cuts to pass on the expected GST benefits to customers. Four-wheeler manufacturers have announced price cuts on their product lineup as well.

DriveSpark Thinks!

tvs motors' announcement of passing on the expected benefits based GST is a welcome update for potential buyers. Instead of absorbing the benefits, tvs motors has passed it on to customers, and that is a good initiative by the two-wheeler manufacturer.