GST Effect : Honda Scooters And Motorcycles To Cost Lesser

The Honda Activa is India's largest selling scooter right now, and it's sales numbers do not show any signs of slowing down. However, with the Indian government bringing in the goods and service tax (GST) scheme, effective 1st July 2017, would its sales be affected?

It turns out, its sales wouldn't be affected in any way whatsoever. In fact, we can expect its sales to increase since it's prices are set to decrease after GST is implemented. Honda Motorcycle and Scooter India is expected to reduce prices of its entire product range in India up to 350cc, by 3-5 percent.

This is because, under the GST scheme, motorcycles with an engine capacity above 350cc will be taxed at a higher rate. So if you are looking at bigger Honda motorcycles like the CBR 650F, the CBR 1000RR, and the newly launched Africa Twin, there would be an increase in prices post 1st July.

Referring to the price drop on motorcycles with engine capacity below 350cc, Senior Vice President, Sales and Marketing of Honda Motorcycle and Scooter India, Y S Guleria was quoted as saying, "The Price cut will differ from state to state and product to product. We expect it to range between 3-5 percent on an average. Whatever benefit there is, we will pass on to the customer."

DriveSpark Thinks!
The Goods and Service Tax system is a boon to those looking forward to purchasing smaller motorcycles and scooters like the Honda Unicorn and Honda Activa, but a bane for those looking at larger motorcycles.

Also Read:

Royal Enfield Prices Post GST

Maruti Swift Prices Drop Post GST

Maruti Suzuki Alto Prices Drop After GST

Honda Activa Prices Drop Post GST

KTM Motorcycles Prices Increase After GST