VE Commercial Vehicles Extends Full GST Reduction Benefit to Customers

Key Highlights:

• GST cut on trucks and buses from 28% to 18%.

• Electric vehicles continue at 5% GST.

• Benefits up to ₹6 lakh for customers.

• Effective from September 22, 2025.

• Supports the PM Gati Shakti program.

VE Commercial Vehicles (VECV) has announced that it will pass on the complete benefit of the reduced Goods and Services Tax (GST) rates to its customers. This move will directly lower the acquisition cost of Eicher trucks and buses, bringing much-needed relief to the commercial vehicle sector.

Also Read: VECV Expands EV Portfolio and Reports 42% Renewable Energy Use on World EV Day 2025

GST Rate Reduction for Trucks and Buses

The government recently reduced GST on diesel, CNG, and LNG trucks and buses from 28% to 18%, while electric vehicles continue to enjoy the lower GST rate of 5%. This landmark decision is expected to boost logistics efficiency in line with the PM Gati Shakti program.

Festive Benefits for Customers

Coinciding with the start of Navratri, customers purchasing new Eicher vehicles from September 22, 2025, will benefit from lower prices. Depending on the vehicle type, the savings will range from ₹1 lakh to ₹6 lakh.

Price Reduction Breakdown:

• LMD Trucks: ₹1.0 – ₹2.0 lakh

• HD Trucks: ₹1.5 – ₹6.0 lakh

• Buses: ₹1.1 – ₹3.4 lakh

• Electric Trucks & Buses: Continue at 5% GST

Also Read: VECV and Jio-bp Pulse Partner to Expand EV Charging Network for Commercial Vehicles

Strong Support from VECV Leadership

Mr. Vinod Aggarwal, MD & CEO of VECV, expressed gratitude to the Prime Minister, Finance Minister, and the GST Council. He said: “We sincerely thank the government for reducing GST from 28% to 18%. This reform comes at the right time, providing relief after slowing sales and rising costs. Beyond customer savings, this move will lower logistics costs, improve consumer sentiment, and boost GDP through stronger logistics and allied industries.”

Positive Impact on Transport Sector

The GST cut will help:

• Truck operators can reduce cost pressures and increase freight demand.

• Bus operators can encourage fleet modernization for better public mobility.

• Fleet owners and small businesses can lower their Total Cost of Ownership (TCO) and improve profitability.

This festive season gift is also expected to accelerate the adoption of safer, modern, and fuel-efficient Eicher vehicles, strengthening India’s transport ecosystem during Amrit Kaal.

About VE Commercial Vehicles Limited (VECV)

VECV is a joint venture between the Volvo Group and Eicher Motors Limited. The company offers a wide range of Eicher-branded trucks and buses and is the exclusive distributor of Volvo Trucks in India. Known for modernizing commercial transportation, VECV continues to deliver innovative and sustainable mobility solutions.

Also Read: NHEV and Transvolt Roll Out 1,000 Electric Trucks Across India on World EV Day

CMV360 Says

The GST reduction is a major relief for truck and bus operators, lowering costs and encouraging faster adoption of modern, fuel-efficient Eicher vehicles. With benefits up to ₹6 lakh, the initiative will ease financial pressures, support fleet modernization, and boost logistics efficiency. This customer-friendly move by VECV strengthens India’s commercial vehicle sector and aligns with the government’s vision for growth.