Siddhartha Lal, Managing Director of Royal Enfield, has called on the government to implement a uniform 18% Goods and Services Tax (GST) rate for all two-wheelers. He emphasized its importance for maintaining industry momentum. The proposed GST revision could potentially lower taxes on smaller bikes to 18%, while higher-capacity motorcycles might still face higher taxation.
Currently, automobiles are subject to the highest GST slab of 28%, along with an additional compensation cess ranging from 1% to 22%, depending on the vehicle category.
Lal highlighted that Indian brands already dominate the small-capacity bike segment globally and are expanding into mid-capacity motorcycles. He stated that by offering exceptional value, Indian manufacturers are attracting riders worldwide to shift from larger, higher-displacement machines to Indian-made mid-size motorcycles. To sustain this growth, a uniform 18% GST across all two-wheelers is crucial.
Royal Enfield, a subsidiary of Eicher Motors Ltd, is a leading player in the mid-sized motorcycle market. Lal further asserted that while lowering GST for bikes under 350cc would increase accessibility, raising GST for those over 350cc would harm a vital segment for India’s global competitiveness.