Two and three-wheeler major Bajaj Auto on Wednesday said that it has reduced the prices of its bikes by up to Rs 4,500 with immediate effect, in order to pass on the expected GST price advantage to its customers.
"The savings will range up to Rs 4,500 depending on the model and the state in which the motorcycle is purchased," the company said in a statement.
According to the company, the post-GSTbenefits will vary for each state and differ across motorcycle models.
"With GSTimplementation just around the corner, we felt that it would be appropriate to pass on this significant savings to customers," said Eric Vas, President, Motorcycle Business, Bajaj Auto.
After the GST is implemented from July 1, motorcycles with more than 350 cc engines will attract 28.84 per cent tax, while mid-segment and high-end luxury cars will call for a tax incidence of 32.2 per cent.
Bajaj Auto's standalone net profit during the quarter ended March 31, 2017 declined to Rs 802 crore from Rs 949 crore in the corresponding period of 2015-16.
Bajaj Auto's total income for the fourth quarter (Q4) decreased by 7.72 per cent to Rs 5,506 crore from Rs 5,967 crore earned during the corresponding period of fiscal 2016.
The two and three-wheeler manufacturer's sales during the period under review dipped by 9.72 per cent to 787,627 units from 872,458 units off-take in the corresponding period of 2015-16.
On a full financial year 2016-17 basis, the company reported that its standalone net profit decreased by 2.59 per cent to Rs 3,828 crore from Rs 3,930 crore in 2015-16.
