UM Lohia Two Wheelers today announced a reduction in prices of its two bikes by up to Rs 5,700 with immediate effect to pass on the expected benefit of GST to customers.
The company, a joint venture between US-based UM International and Lohia Auto, has cut the price of Renegade Sports S by Rs 4,199.01 and Renegade Commando by Rs 5,684.29.
Taxes on motorcycles shall reduce in most states with the implementation of the Goods and Services Tax (GST) from July 1 2017, although benefits vary from state to state.
Currently, Renegade Sports S is priced at Rs 1,78,518 while Renegade Commando is tagged at Rs 1,84,397 (ex-showroom Pune).
"We have decided to preemptively extend benefits before the GST is implemented. We are committed to delivering customer satisfaction and giving authentic, pure motorcycling experience to our community and consumers," UM Lohia Two Wheelers CEO Rajeev Mishra said in a statement.
Under GST, most of the two-wheelers will attract a tax rate of 28 per cent, lower than total tax incidence of around 30 per cent at present.
Motorcycles with engine capacity of over 350 cc will attract an additional cess of three per cent.
Already, Bajaj Auto and Royal Enfield have announced a reduction in prices of their motorcycles to pass on the expected benefits of GST to customers.
Disclaimer: No Business Standard Journalist was involved in creation of this content
