Saturday, 1 July 2017

GST impact on motorcycles, two-wheelers: Change in prices of Royal Enfield, Bajaj, TVS and Honda motorcycles


Good and Services Tax is the buzz word for the day. Although it is far from as simple as advertised,  it has to many simplified their entire business model albeit sending a few chartered accountants into the insane asylum. The way it works is that all goods and services are to be taxed equally, however ultimately it works out quite differently. This means that some products get more expensive while some will get cheaper. Now if you have been in the market for a new two wheeler, depending on which one you had your eye on, you probably want to know whether it will get more expensive or not. Ultimately, there is one overall guideline that you could follow, if it’s above 350cc, like a Bullet then it will get more expensive, while the newly launched Duke 250, it will get cheaper. Not that all of this is really that simple either, considering that companies like these that manufacture automobiles will be facing some changes (either more or less) on the prices of their raw materials and parts, and thereon they can decide if they want to pass down those rates to the customer. Point being is its very complex. If you still feel the need to get specific, we’ve got a list of popular bikes and an approximation how they’ve been affected.
GST Impact on Bajaj Motorcycles  
Bajaj has been on the front foot for the last few years bringing in some great motorcycles (the likes of KTM and Kawasaki) and even bringing their R&D forward a great bit. I suppose Mr. Bajaj isn’t all that “mad in India” after all. Most of Bajaj’s range will make it under the 350cc mark and therefore will get a 4% rebate on the existing tax structure. That is of course excluding the Dominar 400 which is above the bracket and find a marginal increase of .8%.
Pre-GST Prices of Bajaj Pulsar Range: Rs 82,147-1,37,862
Post-GST Prices of Bajaj Pulsar Range: Rs 78,861-1,32,347
Pre-GST Prices of  Bajaj  Discover :Rs  57,326
Post-GST Prices of Bajaj  Discover: Rs 55,033
Pre-GST Prices of  Bajaj Dominar: Rs 1,54,503
Post-GST Prices of Bajaj Dominar: Rs 1,55,739
GST Impact on Royal Enfield Motorcycles
The last seven years have been a renaissance of sorts for the Royal Enfield Brand. Apparently if those people who had bought Royal Enfields motorcycles in 2010, had instead bought their stocks they’d have had money to buy a Rolls Royce. Oh ! The irony. Needless to say that, Mr. Sidd Laal won’t be too happy about the GST considering that Royal Enfields have literally been made the end marker for the GST’s bad side,
Pre-GST Prices of  Royal Enfield Classic 350cc: Rs 1,52,865
Post-GST Prices of Royal Enfield Classic 350cc:Rs 1,54,087
Pre-GST Prices of  Royal Enfield Himalayan:Rs 1,82,364
Post-GST Prices of Royal Enfield Himalayan: Rs 1,83,822
Pre-GST Prices of Royal Enfield Bullet 350cc:Rs 1,28,409
Post-GST Prices of Royal Enfield Bullet 350cc: Rs 1,29,436
GST Impact on TVS Motors
TVS Motors is an endearing sort of company. It has both earned its pedigree with global standards in R&D and made some great alliances (BMW, Sherco and Suzuki !!) along the way. They’ve even managed to lock in a great image for their brand. Luckily since even the biggest TVS in the future is going to be no more than 310cc, they will all also the standard 4% reduction.
Pre-GST Prices of  TVS Star City Plus:Rs 51,888
Post-GST Prices of TVS Star City Plus:Rs 49,812
Pre-GST Prices of  TVS Apache RTR 200 4V:Rs 1,05,609
Post-GST Prices of TVS Apache RTR 200 4V:Rs 1,01,304
Pre-GST Prices of TVS Victor:Rs 59,286
Post-GST Prices of TVS Victor:Rs 56,914
GST Impact on Honda Motorcycles
Very few people expected Honda to make the most of their Hero divorce, but they did and how. Meanwhile Hero-Honda which was dwindles on the sidelines. The same 350 cc rules apply, and since Honda has stakes in both the upper and lower segments of the range, they will see 4% decrease in the lower categories and about 8% in the higher categories.
Pre-GST Prices of Honda CB Unicorn 160: Rs 85,215
Post-GST Prices of Honda CB Unicorn 160: Rs 88,623
Pre-GST Prices of  Honda CB Shine SP:Rs 70,147
Post-GST Prices of Honda CB Shine SP: Rs 67,341
Pre-GST Prices of Honda CBR 650 F: Rs 8,64,249
Post-GST Prices of Honda CBR 650 F: Rs 8,71,162
Note: All prices are indicative and may differ from the actual cost at a certain dealership. All prices are ex-showroom Delhi.

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