Bajaj Auto Ltd. Pulsar bikes sit prepared on the finish of the meeting line on the firm’s manufacturing facility in Pune, India, on Monday, July 5, 2010. Bajaj Auto Ltd., India’s second-largest motorbike maker, scrapped plans for a low-cost automotive maker with Renault SA and can as a substitute provide autos to the French firm. Photographer: Kuni Takahashi/Bloomberg
| Photo Credit: KUNI TAKAHASHI
The Federation of Automobile Dealers Associations (FADA) stated it has submitted a illustration to the GST Council urging quick discount within the GST rate on two-wheelers from the present 28% to 18%.
“This timely and decisive intervention is aimed at making two-wheelers more affordable, reviving demand and reinvigorating an industry that has seen a significant slump in sales over the past few years,” FADA stated in a press release.
Manish Raj Singhania, president, FADA stated, “The two-wheeler industry is at a critical juncture, grappling with unprecedented challenges such as rising inflation, stringent emission norms and post Covid-19 effects.”
“Now is the opportune moment for the GST Council to reduce the GST rate on two-wheelers, making them more accessible for the common man, thereby providing much-needed boost to the industry, generating employment opportunities and fostering India’s overall economic growth,” he stated.
Over the previous few years, costs of assorted two-wheelers have risen considerably, impacting their affordability for customers throughout India, FADA stated.
For occasion, the worth of Honda Activa has escalated from ₹52,000 in 2016 to ₹88,000 in 2023. Similarly, the worth of Bajaj Pulsar has elevated from ₹72,000 in 2016 to ₹1,50,000 in 2023.
Hero Splendor and TVS Jupiter have additionally skilled appreciable value hikes over the identical interval, with their costs hovering from ₹46,000 to ₹74,801 and ₹49,000 to ₹88,498, respectively, FADA stated.
The steady rise in two-wheeler costs has consequently led to a decline in sales.
“In 2016, two-wheelers accounted for 78% of the total automobile sales in India. However, due to continuous price increases since 2020, this contribution has fallen to 72% in FY23, underlining the impact of the steep price hike,” FADA added.
It believes {that a} discount within the GST rate will handle a number of crucial points dealing with the trade, together with rural misery, the transition from BS-4 to BS-6 emission norms and the sharp improve in two-wheeler costs.
