The Indian two -wheeler industry, which has been considered the biggest success story of ‘Make in India’ for a long time, stands at a important turn today. Recently, after the announcement made by the Prime Minister to improve the Goods and Service Tax on the occasion of Independence Day, the discussion of the price of vehicles has started.
But on the other hand, the managing director (MD) of the legendary vehicle manufacturer Eicher Motors Limited and the CEO (CEO) Siddharth Lal have requested the government to implement an equal 18% GST on all two-wheelers. So that this sector of India not only maintains its current lead but can also ensure global leadership for the coming decades.
MD Siddharth Lal of Eicher Motors Limited, the original company of Royal Enfield, has today demanded the government to uniform the Goods and Service Tax (GST) on two -wheelers. Siddharth Lal has also written a long article on this subject on his official social media handle today.
He wrote in his post that, “India’s two-wheeler industry ‘Make in India’ is the biggest success story of the initiative. And it is the only manufacturing sector where the Indian brand is playing the role of a leader at the global level. Due to strong government support and big domestic market, Indian producers have achieved unmatched scale and ability. International standards have been set in distribution. This power is also attracting global competitors to build in India today. “
He further wrote that, “Indian brands are already dominating small-capacity segment worldwide and through big investment, we are now making deep penetration in mid-capacity motorcycles. In affordable prices, we are attracting riders around the world to large and higher engine capacity machines.”
Expressing concern about the GST on heavy bikes, Siddharth Lal wrote that, “To maintain this momentum, a similar GST rate of 18% on all two -wheelers is extremely important. Reduce GST on the bikes with engine capacity will increase our access to customers, but increasing GST on 350CC will increase our access to GST. Is only important. “
Regarding the damage caused by the distributed tax system, Siddharth Lal said that this split tax reizim will give a chance to foreign vehicle manufacturers, and the segment in which India is ahead today will be left behind. He tried to explain how the tax system divided would affect- after expressing some special points-
Why worry increased?
- Motorcycles above 350cc are only 1% of India’s two -wheeler market.
- Increasing GST on these will give the government only minor revenue, but this entire segment can shrink.
- These motorcycles are not luxury products for Indian riders, but cheap and effective options of cars.
- They provide the benefit of low fuel consumption and easy maintenance, which also reduces the fuel import of India.
Global rich will be limited
“Foreign market requires a large and competitive product range for success. The heavy GST on segment with engine capacity more than 350 cc will limit us to two -wheelers with small engine capacity. And weakening the strong dealer of Indian brands and weakening the capacity to make brand equity at the global level.”
Foreign rivals will get a chance
“The rivals of the countries where there are no such perverted (tax inequalities) will capture the mid-size segment at the global level and then infiltrate the market with small engine capacity. Where India is currently leading.”
Siddharth Lal further wrote that, “The important thing is that motorcycles above 350 cc make only about 1% of India’s two -wheeler market. Increasing GST will increase revenue, but this segment will shrink. For Indian riders, these motorcycles are not luxury goods. Rather, these are efficient and affordable options, which are less fuel, which gives less fuel, which are less fuel and low. India’s fuel also helps in reducing imports.
Future strength in (EVS)
India is already ahead of China, Japan, Europe and America in terms of two -wheelers. If the uniform is applied 18% GST, then India can lead the world not only in petrol-diesel two-wheelers, but also in electric two-wheelers (EVS). This will also promote supporting industries like battery, semiconductor and advanced electronics and India will become a global hub of Next Generation Mobility.
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