Bajaj Auto will launch the world’s first CNG-powered motorcycle next month to lower the running cost of bikes.
The goods and services tax together with the safety and emission norms have led to an exponential rise in the prices of two-wheelers.
The GST taxation structure of 28 per cent for two-wheelers along with an “over-regulation of emission and safety norms” is killing the two-wheeler market, said Rajiv Bajaj, CEO of Bajaj Auto, while launching a new Pulsar at Akurdi on Friday.
The GST levy on two-wheelers above 350cc is 28 per cent with a cess of 3 per cent while bikes with less than 350cc engines attract GST of 28 per cent.
“GST for two-wheelers should be 18 per cent or 12 per cent. In countries such as Turkey and Columbia where our bikes sell, the tax equivalent of GST is something like 8-14 per cent. No wonder a Pulsar which used to sell at ₹60,000 today sells for ₹1.15 lakh,” said Bajaj.
Bajaj launched the biggest Pulsar NS400Z with a liquid-cooled 373 cc engine at ₹1.85 lakh, ex-showroom.
Asked if these were introductory prices, Bajaj said: “We will see how the bike sells at these prices. But I will not have the courage to increase the prices.”
Arguing that the market was over-regulated, the Bajaj Auto CEO pointed out: “What is the point of making anti-lock braking system (ABS) compulsory for 150 cc bikes There was a discontinuity in the market when the BSVI regulations and safety regulations came into play."
