Post GST BS-4 trucks available at BS-3 prices
The current selling prices of Bharat Stage-4 (BS-4) and that of Bharat Stage-3 (BS-3) variant trucks have now become comparable because of two reasons, post-GST tax reduction and the now added double digit discounts.
Still struggling to recover from the sales hit from demonetisation, major commercial vehicle makers have resorted to giving double digit discounts to revitalize the segment.
A report in the Business Standard says the prices of the current selling prices of Bharat Stage-4 (BS 4) and Bharat Stage-3 (BS 3) variants of truck models have now become comparable.
The fall in prices of BS 4 vehicles is due to the reduction in tax incidence post-GST and because companies want to give sales a push in a slow environment. BS-4 trucks are typically pricier than BS 3 ones as they are technologically more advanced and are more environmentally said.
Tata Motors is said to have offered a national transport company a deal for 25 trucks (11 tonnes capacity), with each truck sold at Rs 11.10 lakh against the quoted price of Rs 13.10 lakh.
The deal took place after GST was implemented in July. This led to a 6 percent cut in price. The new price after taxes is Rs.10.45 lakh. This vehicle same also abides by the BS-3 standards and was sold at Rs.10.41 lakh until March this year.
The Supreme Court had previously stopped companies from selling BS-3 vehicles from April.
Sales of medium and heavy commercial vehicles (M&HCVs) are down 23 per cent FY18 Q1 to 71,223 units. Ashok Leyland, which forms the bulk of this segment, declined 22 per cent to 59,575 units. Light commercial vehicles (LCVs), grew at about 10 per cent to 139,614 units.