Hornet 180 price reduction will be to the tune of Rs 11,000; Activa and all other products will get cheaper when GST rates will be cut…
Auto manufacturers like Hero MotoCorp, Honda, Bajaj and others have been pushing for a reduction in GST rates on two-wheelers for the last 18 months or so. Most of them have chipped in with their thoughts at different intervals.
The two-wheeler industry is burdened by the recent and frequent government mandated regulations which have increased the prices of vehicles by very significant margins. What is absolutely senseless is that 2-wheelers are taxed at 28 percent which is the highest slab reserved for luxury or ‘sin’ goods.
Now clearly 2-wheelers are the basic-most necessity in the country and this was acknowledged by the current Finance Minster Nirmala Sitharaman very recently raising a hope that a GST cut will be announced on the 27th August’s GST Council meeting. However, there was no announcement!
Yadvinder Singh Guleria, Director, Sales & Marketing at Honda India said that failure/delay in the reduction of GST rates will be counter-productive for the industry which has barely managed to witness green shoots after the COVID-led massive disruption.
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Mr Guleria is of the opinion that amid this indecisiveness, buyers will postpone their decisions which may impact 2-wheeler sales directly. He, in fact, goes onto claim that if the GST rate gets cut (to the lower 18 percent slab) Activa could become cheaper by as much as Rs 5500 and the latest launch Hornet 180 may get affordable by a whopping Rs 11,000 which is very big relief. This also gives us an idea of how a large part of our ex-showroom payment goes to the government. And this is apart from the Road tax, registration and insurance charges that are also at extremely high levels.
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Honda has added 1 lakh+ incremental sales for the third consecutive month in August and hopes to carry the momentum going into the festive season.
Source – Money Control