VECV Passes Full GST Benefits on Trucks & Buses to Customers

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has announced that it will fully pass on the benefit of the recent Goods and Services Tax (GST) reduction to its customers. With the GST on diesel, CNG, and LNG-powered trucks and buses slashed from 28% to 18%, buyers can save up to ₹6 lakh on vehicle acquisition. Electric trucks and buses will continue to enjoy the already favourable GST rate of 5%.

The revised rates will come into effect from September 22, 2025, coinciding with the beginning of the festive Navaratri season, a period many consider auspicious for making new purchases.

Substantial Savings Across Segments

Depending on the model, the revised GST structure translates into savings of ₹1–2 lakh for light and medium-duty trucks, ₹1.5–6 lakh for heavy-duty trucks, and ₹1.1–3.4 lakh for buses. VECV expects this relief to encourage fleet modernisation and boost demand in both the freight and passenger mobility sectors.

Boost to Freight & Public Transport

Company executives believe the tax cut will ease acquisition costs and stimulate demand in logistics and state transport undertakings. For buses in particular, the lower costs are expected to accelerate fleet renewal among government and private operators, improving safety and efficiency in passenger transport.

Festive Push for Modern Mobility

Vinod Aggarwal, MD & CEO of VECV, expressed gratitude to the Prime Minister, Finance Minister, and the GST Council for the reform.
“This landmark decision comes at the right time, especially after a period of slowing sales and rising input costs. Beyond the direct benefits to customers, this move will help reduce logistics costs under the PM Gati Shakti programme, uplift consumer sentiment, and positively impact GDP by spurring activity in logistics and allied industries,” Aggarwal said.

Strengthening the CV Industry

Industry experts note that the GST reform is expected to accelerate the adoption of safer, fuel-efficient, and technologically advanced vehicles. By reducing the total cost of ownership (TCO), small businesses, fleet operators, and owner-drivers will find it easier to invest in vehicles that comply with current and future emission norms.

With this announcement, VECV reinforces its commitment to strengthening India’s commercial vehicle sector, offering both Eicher-branded trucks and buses as well as Volvo trucks through its exclusive distribution network in India.