How much can customers save?
The modern range of Eicher trucks and buses will now cost significantly lower, which is due to lack of GST from 28 percent to 18 percent on commercial vehicles. Depending on the model, customers can save 6 lakhs on new purchase. The revised prices apply to all purchases made from September 22, 2025.
According to VECV, light and medium-fees (LMD) trucks will become cheap 1-2 lakh, heavy duty (HD) by truck 1.5-6 lakhs, and buses 1.1–3.4 lakhs. Electric trucks and buses continue to attract a low GST rate of only 5 percent.
What does this mean for CV industry?
VECV MD and CEO Vinod Aggarwal welcomed the government's decision, called it “historic reform” that comes at a significant time for the commercial vehicle sector. “It reduces GST cut acquisition costs, the PM Gati Shakti supports logistics efficiency to suit the program, and stimulates economic growth through strong consumer spirit,” he said.
Those who monitor the industry believe that tax deduction will help reduce the cost pressure on the goods operators, demand demand in logistics, and the modernization of the bus fleet will be encouraged by the state and private operators. The move is also expected to make safe and fuel-skilled vehicles more affordable, which increases the adoption of new generation commercial vehicles.
Why is this for operators?
The low acquisition cost translates to the total cost (TCO) directly for truck driver and bus operators. For small businesses and owner-operators, it means improvement in profit and better access to future prepared vehicles. Cheap trucks are also expected to reduce freight rates, benefiting areas such as agriculture, e-commerce, FMCG, cement and steel.
New GST rules for commercial vehicles
The GST Council improves the tax structure for the correction of the council, or 'GST 2.0', commercial vehicles and related industries. Trucks, buses and road tractors for semi-trailers have reduced GST from 28 percent to 18 percent. Under 1800 cc, tractors now attract only 5 percent GST, while tractor parts are also taxed at 5 percent. The auto components for cars and bikes have fallen by 18 percent.
Low GST rates are expected to promote the demand for tractors in India, already the world's largest tractor market, which increases agricultural mechanization and productivity. For buses, by reducing public transport is likely to make more economical, which encourages changes in private to shared mobility. In the trucking sector, a low cost is expected to strengthen India's logistics spinal cord and align with the PM, the strength and the national logistics policy goals.
In addition, GST has been cut from 12 percent to 5 percent on third-party insurance for goods car, which gives further relief to truck owners. Along with transportation -related services, reforms promised to reduce inflation pressure and improve India's export competition.
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First published date: 12 September 2025, 14:35 PM IST
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