India has witnessed the new taxation regime in the form of GST wef 1st of July 2017 and the implementation has been hailed as a major economic reform that has impacted almost all the goods and services in the country. The vendors and buyers are still confused on the impacts of this new taxation reform that calls for one nation, one market and one tax! The prices have seen changes across the board and manufacturers have also found an integral role in this transition. They have to be vigilant on the price changes that would be effected on their products and have to therefore ensure that they do not lose the customer bases which they now hold.
Apart from the traditional commodities and FMCG goods of diversity, market of luxury and high-end products like automobiles is witnessing fine dynamism and manufacturers are offering the new pricelists to clear the uncertainty and gaps viz a viz the vendors and prospective customers who are waiting for the new guidelines. The Spirit Yamaha, the leading Yamaha showroom in Kothrud, Pune is upbeat with the new price range. The world’s leading two-wheeler brand Yamaha has announced the new prices for all its models and has in principle welcomed the new taxation system enforced by the Government of India.
Dealers and manufacturers transferring tax benefits to customers
There is actually a price drop for most of the Yamaha bikes in the popular segment. The new price’s of Yamaha bikes after GST in Yamaha showroom Kothrud has seen drop that ranges from few hundreds to few thousands, depending upon the engine cc category in which the bike comes in! According to the broad structure that has been worked for the two wheelers sales market in India, the GST for the bikes above displacement of 350cc is kept at 31%; while for the bikes with displacement below 350cc, the rate is pegged at 28%. This is the broad segregation maintained by the government and is in line with the fundamental policy adopted by the taxmen that recommends more tax on fuel guzzlers on road. The government has maintained the same line and has kept the popular and economy segment models in the 28% tax net. Yamaha released its new price list as per the broader distinctions enlisted in the GST.
Yamaha showroom finds increased demand post GST
Yamaha was among the first two wheelers majors in India that came out with a revised list; Honda and Hero followed afterwards! Yamaha also showed optimism for the market prospects while the buyers have started to assess the price changes and cost benefits. Actual GST on the two wheelers is also to be differentiated on the basis of states that are also the stakeholders in this new taxation system. For the state of Haryana, the implications are pegged marginally negative as compared to the pre-GST regime but for most states including Maharashtra, GST has brought benefits. The Yamaha showroom in Kothrud, Pune – The Spirit Yamaha is therefore upbeat with the new bookings of various models and assumes that Yamaha would benefit through improved sales in Maharashtra and whole of India.