TVS becomes the first two-wheeler OEM to pass on full benefit of GST cut to customers

TVS Motor became the first two-wheeler OEM to pass on the full benefits of the GST rate reduction to its customers—starting September 22, the day on which the new rates come into effect—the maker of Apache motorcycles said on Monday. It also said that it will make extensive efforts to apprise customers of the benefits accruing from the GST rate reductions.

“The GST rate rationalisation is a bold and transformative move that will accelerate consumption across society,” said KN Radhakrishnan, director and CEO, TVS Motor Company, in a statement. Radhakrishnan expressed gratitude to the government for introducing the ‘progressive reforms’. “The Government’s consistent efforts to boost growth and strengthen the middle class’s spending power are vital steps towards realising the Hon’ble Prime Minister’s vision of Viksit Bharat 2047,” he added.

So far, only four-wheeler OEMs have passed on the complete benefits of the GST rate reductions, with Kia Motor India becoming the latest OEM to pass on the complete benefit to its customers across its ICE portfolio. “This (reduction of GST on passenger vehicles) transformative measure represents a progressive and timely decision towards making vehicle purchases more affordable for consumers and bringing a boost to the automotive sector’s growth,” said Gwanggu Lee, managing director and CEO, Kia India, in a statement.

For Kia, the Sonet, its entry-level model, will see a price reduction of up to ₹1,64,471. The Syros will see a reduction of up to ₹1,86,003, whereas the Seltos—Kia’s first model in India—will see a benefit of up to ₹75,372. The Carens will see a benefit of ₹48,513, and the Carens Clavis will see a reduction of up to ₹78,674. The Kia Carnival, Kia’s flagship ICE offering, will see a price reduction of up to ₹4,48,542. The price reductions will take effect on September 22.

According to numbers released by the Federation of Automobile Dealers Association (FADA), TVS Motor was the third-largest seller of two-wheelers in August, selling 2,71,522 units, compared to 2,37,418 units the previous year. Kia India, on the other hand, sold 18,212 units in August, compared to 19,304 units in the same period last year.