While absorbing increased costs internally benefits customers, Aprilia has further sweetened the deal with complimentary features
With the 350cc to 650cc bike segment registering steady growth, one would expect GST rates to be kept at the same level if not reduced. But that hasn’t been the case since GST on 350cc+ bikes has been increased from 28% to 40%. This can lead to moderate rise in prices of these bikes.
However, some brands have chosen to fully absorb the increased GST-linked costs, instead of burdening customers. A relevant example is Aprilia that has decided to maintain the same pricing for its India-made 450cc bikes. Let’s check out the details.
Aprilia RS 457, Tuono 457 – Same pricing, new festive benefits
In the earlier GST regime, bikes of more than 350cc capacity were taxed with 28% GST and 3% Cess (31% in total). While the Cess has been removed completely to simplify the tax structure, the GST on such bikes has been increased to 40%. Aprilia could have increased prices, but it has decided not to burden its customers.
Aprilia will be absorbing the full GST-linked price increase, thereby maintaining the same prices for RS 457 and Tuono 457. Both these bikes are manufactured in India at Piaggio/Aprilia plant in Baramati, Maharashtra. These bikes not only meet domestic demand, but are also exported to multiple overseas locations.
RS 457 will continue to be available at the earlier pricing of Rs 4.35 lakh. This price includes the internally absorbed GST-linked cost of Rs 15,000. Moreover, Aprilia has added a complimentary quickshifter worth Rs 20,500. Similarly, the Tuono 457 will continue to be available at the earlier pricing of Rs 3.95 lakh.
Both bikes share the same 457cc, liquid-cooled parallel-twin engine that generates 47.6 hp and 43.5 Nm of torque. It is paired with a 6-speed gearbox and a slipper clutch as standard. Bidirectional quickshifter was optional, which is now being offered with the RS 457 as a complimentary feature. Tech kit includes a 5-inch TFT display with Bluetooth connectivity. Users can access phone calls, music and navigation. The bikes have LED lighting, traction control, ride-by-wire throttle and ride modes of Eco, Sport and Rain.
Is a rollback expected for GST rate increase for 350cc+ motorcycles?
The increase in GST rate for 350cc+ capacity motorcycles does seem a bit harsh. Especially considering that the 40% tax rate is now the same as that of luxury cars. Earlier, the tax rate on luxury cars was around 50%. While simplifying the tax structure is necessary, some exceptions can always be made in specific cases.
350cc+ capacity bikes contribute only a small percentage to overall bike sales, but they command a strong fan following. An exception could have been made, especially for 350cc+ bikes that are manufactured in India. Based on feedback by consumers and stakeholders, it is possible that a decision to roll back the increased GST on 350cc+ bikes could be considered.
Such cases have happened in the past, since not everything can be perfect on the first try. It’s good that some OEMs are proactively taking steps to avoid burdening customers, as enthusiasts hope for the gradual governance machinery to iron out the bugs in the new GST structure.
Source: Bike - rushlane.com
