Bajaj Auto Ltd. on Monday sweetened the deal for its best-selling Pulsar motorcycles, offering an additional 50% in financing benefits to customers, on top of the recently reduced Goods and Services Tax (GST).
The government slashed GST on motorcycles under 350cc from 28% to 18% effective Sept. 22.
Bajaj Auto said Pulsar buyers now gain benefits equivalent to 1.5 times the GST reduction during the festive season on select models.
The company has introduced the 'Hattrick Offer', under which customers receive three distinct advantages: the full GST reduction passed on to customers, zero processing charges, and comprehensive insurance benefits. "Together, these ensure that prospective Pulsar riders enjoy maximum value without additional costs," a statement said.
Under the offer, buyers of the Pulsar NS125 ABS stand to gain savings of Rs 12,206. The 124.45 cc bike has an ex-showroom price of Rs 1,06,739, according to the website.
Customers opting for the Pulsar N160 USD model, which is powered by a 160.3 cc engine, can realise benefits worth Rs 15,759. The ex-showroom price is Rs 1,30,355.
GST Cut, Demand Hopes
The latest revision in GST has brought cheer to India’s automobile industry and millions of potential buyers. The move has opened the doors for a significant reduction in the prices of two-wheelers and small cars, potentially by more than 10%, creating a wave of optimism among buyers.
Keeping the benefits and customers in mind, the auto industry has decided to pass on the benefit to the customers by cutting the prices on their cars and two-wheelers.
For two-wheelers, which remain the most common mode of transport across India, particularly in rural and semi-urban regions, this move is expected to be transformative. Lower prices will make bikes more accessible for youth, students, and professionals, while also benefiting farmers, small traders, and daily-wage earners who rely heavily on motorcycles for mobility.
Many other two-wheeler manufacturers, including Royal Enfield, Honda, Hero MotoCorp, and TVS Motor have also announced price reductions for their under-350cc models in response to the GST cut, depending on the model and brand. This indicates a competitive market response to the tax change.
Bajaj Auto Executive Director Rakesh Sharma told NDTV Profit on Monday that the GST rate cut will be a "point of inflection" for the two-wheeler industry. "This will hopefully take the growth from negative to positive zone. The industry was in a negative trajectory from April to August and now hopefully we will be getting into positive growth. The new ew demand in the festive period will be much higher now compared to a non-GST rate cut environment."
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