GST Effect on Hero Maestro Edge and its Rivals

Posted on Posted in Advance Auto, Dealer

Confused whether to buy Hero Maestro Edge or other gearless scooters before or after GST implementation on 1st July? Read on to clear all your doubts.

We are just a few hours away from the implementation of India’s unified taxation system, also known as the Goods and Service Tax (GST). There have been lots of speculations around regarding GST and its effect on the Indian automobile segment. Earlier many reports claimed that the prices of four-wheeler and two-wheelers will go up, while some claimed that prices will go down. However, there still remains a lot of uncertainty about the pricing changes.

The gearless scooter segment is also going to be affected after the GST implementation. And as a result, gearless scooters like Hero Maestro Edge, Hero Duet, Hero Pleasure, Honda Activa 4G, TVS Jupiter and others will have a price revision.

The prospective buyers of the all-new Hero Maestro Edge and the highly successful Honda Activa 4G are confused whether they should buy these scooters before 1st July or after it. Let’s clear all your doubts here-

Will the prices go up or down?

The year 2017 has been a year of uncertainty for the two-wheeler buyers. A few months back, buyers rushed to the dealerships to avail the BS-III offers & discounts, and the two-wheeler sales reached new heights. And now, dealerships are trying their best clear-up the stick before 1st of July, when GST comes into effect.

As per the new unified taxation system (GST), two-wheelers above 350cc segment will now fall under the 31 percent GST tax slab. And those two-wheelers below 350cc will now be levied 28 percent, down by 2 percent from the existing 30 percent. And hence, it is clear that two-wheelers below 350cc displacement will get cheaper and those above it will become expensive.

This suggests that high capacity bikes like Royal Enfield Classic, KTM 390 Duke and Harley-Davidson Street 750 will become expensive from 1st of July. And smaller bikes like Bajaj Pulsar, Bajaj Avenger, Hero Karizma, Hero Xtreme Sports and others will become cheaper. Not only this, but the gearless scooter market will also get price reduction. For example, the ex-showroom price of Hero Maestro Edge can go down by Rs.2,000 after the GST implementation on 1st of July 2017.

What dealers say on the GST effect?

According to many two-wheeler dealers, this is the best time to buy a bike or gearless scooter as the prices will rise. While some of them claimed that prices will fall, but insurance and registration taxes will increase, thus offsetting the GST benefits. As a result, almost every automobile dealer is offering discounts and benefits on two-wheelers bought before GST implementation.

Should you buy now?

If you are planning to buy a high capacity bike like the Royal Enfield Classic, KTM 390 Duke or the Harley-Davidson Street 750, you shouldn’t wait for 1st of July, as the prices of bikes in this segment will increase. And if you are planning to buy a small capacity bike or gearless scooter, you can wait for 1st of July.

Share your comments and thoughts on the impact of GST on the automobile industry below. 

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