Bajaj Auto, a major player in the two-wheeler market, has announced price cuts on its vehicles ahead of the implementation of GST 2.0 in India. The price reduction, ranging from ₹20,000 to ₹24,000, will benefit consumers purchasing Bajaj and KTM motorcycles, the latter being a subsidiary of Bajaj. These lower prices will be available from September 22, the date when the updated GST rates will take effect throughout the country.
The government’s action is aimed at easing vehicle purchases for a large number of families and small enterprises that depend on affordable and trustworthy transportation solutions. Rakesh Sharma, Executive Director of Bajaj Auto Limited, acknowledged the government’s decision to reduce GST on two and three-wheelers as a bold move, which will drive demand and boost the industry. According to the company, vehicles will become even more affordable as the festive season kicks off.
In addition, all auto parts will have a uniform 18% GST, simplifying the tax structure. Small petrol and diesel hybrid cars (petrol up to 1200cc/4000mm, diesel up to 1500cc/4000mm) have also become cheaper with the new GST 2.0. Conversely, luxury cars, large SUVs (longer than 4000mm, petrol above 1200cc, diesel above 1500cc) and motorcycles above 350cc will now be subject to a 40% GST.