VECV To Retain Full GST Cut: Reduces Eicher Trucks and Buses Prices

VE Commercial Vehicles Limited (VECV), a joint venture between the Volvo Group and Eicher Motors Limited, today announced that it will retain the entire benefit of the recently announced GST reduction in prices of its Eicher trucks and buses. From September 22, 2025, all customers of Eicher trucks and buses can buy their vehicles at reduced prices. The news comes shortly after the government slashed the GST on diesel, CNG, and LNG commercial vehicles from 28 percent to 18 percent while keeping the already concessional rate of 5 percent for electric buses and trucks.

The move is a significant milestone for the commercial vehicle sector, which has been reeling from increasing input prices and volatile demand. For independent drivers, small fleet operators, and transporters, this tax cut is a much-needed let-off. Customers will now save up to six lakh rupees based on the category of vehicle they buy. Light and medium-duty trucks will experience prices that drop between one and two lakh rupees, while heavy-duty trucks will bring relief of between one and a half to six lakh rupees. Buses will also become cheaper, with reductions of a bit over one lakh to over three lakh rupees. The expansion of the lowered 5 percent GST rate on electric trucks and buses further enhances the affordability of cleaner mobility solutions.

Commenting on the development, Mr. Vinod Aggarwal, Managing Director and Chief Executive Officer at VECV, said, "The company deeply appreciates the government's decision. The company sincerely thanks the Hon'ble Prime Minister, the Hon'ble Finance Minister, and the GST Council for this historic reform." Under his belief, the reduction not only alleviates cost pressures on customers but also reinforces India's overall economic structure by reducing the cost of logistics, enhancing consumer sentiment, and increasing GDP growth. He also added that the reform is directly aligned with the PM Gati Shakti Program, which aims to develop a seamless and efficient logistics system within the country.

The decision's timing is also noteworthy. With the announcement being made at the commencement of the holiday season, the customers will be urged to upgrade their fleets and purchase vehicles that are both fuel-efficient and advanced in technology. For truck operators in the individual segment, the reduced costs facilitate the transition to newer vehicles that ensure improved performance and safety. For big logistics firms, the effect is compounded on their fleets, where total savings can run into many crores of rupees.

The advantages spill over to operators at a broader level. Lower acquisition prices will translate directly into a decrease in the total cost of ownership, which is a critical measure for the commercial vehicle sector. This will result in increased efficiency in freight movement, enhanced profitability for enterprises, and enhanced mobility options for passengers. The GST reform will further help reduce emissions and enhance the sustainability of India's transportation system by promoting quicker uptake of newer and fuel-efficient vehicles.

For the bus sector, the reduction is especially significant. State transport corporations and private players have had cost constraints in fleet modernization all along, but at lower prices, modernization is much more within reach. This will translate into safer buses with improved passenger comfort, enabling the government's overall objective of increasing public mobility. In the freight sector, the reform translates to trucks that are better able to meet contemporary logistics requirements while lessening running costs for operators.

The wider economic effect of this decision cannot be ignored. By reducing the cost of vehicles, the reform stimulates investment in various sectors that rely heavily on logistics, such as e-commerce, manufacturing, construction, and retail. Since logistics is a major growth driver of India, streamlining inefficiencies in the sector makes the overall economy stronger and more competitive globally.

VE Commercial Vehicles Limited (VECV) still leads the market in providing a full spectrum of Eicher-branded trucks and buses and as well as being Volvo Trucks' exclusive distributor in India. Guided by its emphasis on cutting-edge technology, green practices, and customer satisfaction, VECV is dedicated to building the future of commercial transport in India.

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