Eicher Motors’ VECV Passes Full GST Reduction Benefit to Commercial Vehicle Customers, Slashes Prices by Up to ₹6 Lakhs
VE Commercial Vehicles Ltd (VECV), a subsidiary of Eicher Motors, announced it will pass the full benefit of the recent GST reduction on commercial vehicles directly to its customers. Effective from September 22, 2025, the GST rate on diesel, CNG, and LNG trucks and buses has been cut from 28% to 18%, leading to price reductions of up to ₹6 lakh across VECV’s vehicle range. Electric vehicles will continue to enjoy the lower GST rate of 5%. This step aims to ease cost pressures on fleet operators and small businesses, encourage fleet modernization, and support broader economic growth aligned with government initiatives like the PM Gati Shakti program.
VE Commercial Vehicles Ltd (VECV), a joint venture between Eicher Motors and the Volvo Group, announced that it will pass the full benefit of the recent GST reduction
on commercial vehicles directly to customers, effective from September 22, 2025. The GST Council’s approval of ‘GST 2.0’ reforms cut the GST rate on diesel, CNG, and
LNG commercial vehicles from 28% to 18%, which translates into significant price reductions across VECV’s portfolio.
The price cuts vary by vehicle category: light and medium-duty (LMD) trucks will be cheaper by ₹1-2 lakh, heavy-duty (HD) trucks by ₹1.5-6 lakh, and buses by
₹1.1-3.4 lakh. This move aims to ease cost pressures on fleet operators, small businesses, and owner-drivers, helping reduce total cost of ownership
(TCO) and improve profitability.
Vinod Aggarwal, MD & CEO of VECV, expressed gratitude toward the government for this reform, highlighting its timely relief amid slowing sales and rising input costs in the commercial vehicle sector. He emphasized the broader economic benefits, including lower logistics costs aligned with the Prime Minister’s Gati Shakti program, stronger consumer sentiment, and a potential GDP boost due to increased activity in logistics and allied industries. Electric trucks and buses will continue to enjoy a preferential lower GST rate of 5%, encouraging the adoption of cleaner, modern vehicles. Along with other automakers like Tata Motors, Hyundai, and Mahindra & Mahindra, VECV’s price reductions mark a coordinated industry effort to pass GST benefits to the market, fostering fleet modernization and supporting India’s automotive industry growth.
VE Commercial Vehicles Ltd (VECV), a joint venture between Eicher Motors and the Volvo Group, announced that it will pass the full benefit of the recent GST reduction
on commercial vehicles directly to customers, effective from September 22, 2025. The GST Council’s approval of ‘GST 2.0’ reforms cut the GST rate on diesel, CNG, and
LNG commercial vehicles from 28% to 18%, which translates into significant price reductions across VECV’s portfolio.
The price cuts vary by vehicle category: light and medium-duty (LMD) trucks will be cheaper by ₹1-2 lakh, heavy-duty (HD) trucks by ₹1.5-6 lakh, and buses by
₹1.1-3.4 lakh. This move aims to ease cost pressures on fleet operators, small businesses, and owner-drivers, helping reduce total cost of ownership
(TCO) and improve profitability.
Vinod Aggarwal, MD & CEO of VECV, expressed gratitude toward the government for this reform, highlighting its timely relief amid slowing sales and rising input costs in the commercial vehicle sector. He emphasized the broader economic benefits, including lower logistics costs aligned with the Prime Minister’s Gati Shakti program, stronger consumer sentiment, and a potential GDP boost due to increased activity in logistics and allied industries. Electric trucks and buses will continue to enjoy a preferential lower GST rate of 5%, encouraging the adoption of cleaner, modern vehicles. Along with other automakers like Tata Motors, Hyundai, and Mahindra & Mahindra, VECV’s price reductions mark a coordinated industry effort to pass GST benefits to the market, fostering fleet modernization and supporting India’s automotive industry growth.