Eicher Motors Arm to Pass On GST Rate Cut to Customers, Effective September 22

Eicher Motors’ subsidiary, VE Commercial Vehicles Ltd (VECV), announced it will pass on the full impact of the recent Goods and Services Tax (GST) cut to customers across its range of trucks and buses. The new prices will take effect from September 22, 2025.
On September 3, 2025, the GST Council reduced the rate on diesel, CNG, and LNG commercial vehicles from 28% to 18%. Electric trucks and buses in the VECV range will continue under the 5% GST rate.
Price Reductions
The revised tax structure will lower acquisition costs for buyers. According to VECV, the reduction will vary by category:
- LMD trucks: ₹1-2 lakh
- HD trucks: ₹1.5-6 lakh
- Buses: ₹1.1-3.4 lakh
The changes are expected to ease operating costs for transporters and encourage the replacement of older fleets.
Industry Context
Other automakers have also announced similar measures. Hyundai and Tata Motors confirmed they will extend the full GST benefit to buyers starting September 22, 2025, while Mahindra & Mahindra revised prices earlier this month.
Royal Enfield, another Eicher Motors brand, has cut prices on its 350cc motorcycle range by up to ₹22,000, as per the news reports. The revised pricing, which also covers service, apparel, and accessories, will be effective from September 22, 2025.
Read more: GST Relief: Check Full List of Car Discounts From Audi, Tata Motors, Nissan, and Hyundai!
Two-Wheeler Impact
The GST Council’s decision also applies to two-wheelers with an engine capacity below 350cc, which will now attract an 18% GST rate. As a result, several models across brands are set to become cheaper.
Eicher Motors Share Price Performance
As of September 11, 2025, at 09:50 AM, the Eicher Motors share price was trading at ₹6,796, representing a 0.59% decrease from the previous closing price.
Conclusion
With the GST reduction set to be passed directly to customers, vehicle buyers across both commercial and two-wheeler segments will see lower prices from September 22, 2025.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Sep 11, 2025, 12:28 PM IST

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