VE Commercial Vehicles (VECV) has announced that it will pass on the benefits of the reduced Goods and Services Tax (GST) rates to its customers. As of September 22, 2025, the prices of Eicher trucks and buses will decrease due to the GST rate reduction from 28% to 18% for diesel, CNG, and LNG vehicles. Electric trucks and buses will continue to attract a 5% GST rate.
The reduction in GST rates is expected to have a positive impact on the logistics and public transport sectors. It is anticipated to support logistics efficiency, as envisioned under the PM GatiShakti programme, by easing cost pressures and boosting freight demand for truck operators. For buses, the cut is aimed at encouraging modernization by state transport corporations and private operators.
According to Vinod Aggarwal, Managing Director and CEO of VECV, the reduction in GST rates provides timely relief to the commercial vehicle sector, which has been experiencing slowing sales and rising input costs. He believes that the reform will have a significant macro-economic impact, including lower logistics costs, stronger consumer sentiment, and a predicted boost to GDP from heightened activity in logistics and allied industries.
The extension of the GST cut benefits to customers will lower the Total Cost of Ownership for fleet operators, small businesses, and owner-drivers, supporting investment in safer and fuel-efficient vehicles. This move is expected to encourage the adoption of newer, more efficient vehicles, which will have a positive impact on the environment and road safety.
The announcement has been welcomed by the industry, and it is expected to have a positive impact on the commercial vehicle sector. With the reduction in GST rates, VECV aims to support the growth of the logistics and public transport sectors, which are critical to the country’s economic development. The company’s decision to pass on the benefits of the GST cut to its customers is a significant move, and it is expected to have a positive impact on the industry as a whole.