Even before the new Goods and Services Tax (GST) structure comes fully into effect, Bajaj Auto is slashing prices for its entire model range so as to pass on the benefit it will accrue on account of GST implementation to its customers. When GST is implemented on July 1, 2017, across India, it will result in cost savings to manufacturers, some or all of which will eventually be passed down to customers. Bajaj will reduce prices of all its offerings by as much as Rs 4,500 (depending on the state and model), with effect from June 14, 2017, to reflect its future cost savings.
According to Eric Vas, president, motorcycle business, Bajaj Auto, "As a responsible corporate, Bajaj Auto is happy to pass on the price saving accruing from GST to its customers. With the GST implementation just around the corner, we felt that it would be appropriate to pass on this significant savings to customers. Bajaj Auto is proud to be the first and only motorcycle company in India, to offer post-GST reduced prices to customers even before the implementation date. Customers no longer need to wait until July 1 to buy their desired Bajaj motorcycle."
Bajaj Auto still hasn't given much clarity about exactly what the actual prices of its bikes will be, or how the on-road prices will change post-GST implementation. We expect to see final numbers from all manufacturers by a couple of months after the implementation.