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VE Commercial Vehicles (VECV), the joint venture between Volvo Group and Eicher Motors, has announced price cuts of up to Rs 6 lakh across its truck and bus portfolio. The move follows the GST Council's decision to reduce the goods and services tax on diesel, CNG and LNG commercial vehicles from 28 per cent to 18 per cent. The revised prices will come into effect from 22 September, just ahead of the festive season.

The reduction means lower acquisition costs for buyers of Eicher's light, medium and heavy-duty trucks, as well as its bus range. According to VECV, customers will now save between Rs 1 lakh and Rs 6 lakh depending on the vehicle type.

Light and Medium Duty Trucks – Price benefit of Rs 1-2 lakh

Heavy Duty Trucks – Price benefit of Rs 1.5-6 lakh

Buses – Price benefit of Rs 1.1-3.4 lakh

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Vinod Aggarwal, Managing Director and CEO of VECV, described the GST rate cut as a “landmark decision” that provides timely relief to the commercial vehicle sector. "We sincerely thank the Hon’ble Prime Minister, the Hon’ble Finance Minister and the GST Council for reducing GST on trucks and buses from 28 per cent to 18 per cent. This reform is in line with the Prime Minister’s vision for lower logistics costs under the PM Gati Shakti programme. It offers immediate benefits to customers, strengthens demand, and will also help boost GDP by driving activity in logistics and allied industries," Aggarwal said.

Industry experts believe the tax cut will ease cost pressures for freight operators, encourage faster fleet modernisation by state transport corporations and private bus operators, and make road-based public transport more affordable.

The decision is also expected to improve profitability for small businesses and owner-drivers by reducing their total cost of ownership. This could accelerate the shift towards safer, fuel-efficient and modern vehicles, supporting India’s goals during the Amrit Kaal.

The announcement comes in the backdrop of the GST Council’s sweeping GST 2.0 reforms, which cut tax rates on several categories of automobiles. For commercial vehicles, the uniform 18 per cent slab now applies to diesel, CNG and LNG models, while electric and hydrogen fuel cell vehicles remain taxed at 5 per cent.

The government expects the reform to reduce logistics costs nationwide, strengthen supply chain efficiency and revive demand in the auto sector, which had been under pressure from rising input costs and sluggish sales.

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Ankit Kumar is a Senior Sub Editor at Zee Business. He covers international affairs, politics, climate change, business, finance and global elections. With experience across digital med ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.