The Federation of Automobile Dealers Associations (FADA) has urged the GST Council for an immediate reduction in the GST rate on two-wheelers from the current 28 per cent to 18 per cent.
This appeal comes at a time when two-wheeler sales have witnessed a significant slump over the past few years. FADA said a GST rate cut will make two-wheelers more affordable, reviving demand and reinvigorating the industry.
FADA president Manish Raj Singhania said: “The two-wheeler industry is at a critical juncture, grappling with unprecedented challenges such as rising inflation, stringent emission norms and the post-Covid 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 the much-needed boost to the industry, generating employment opportunities and fostering India’s overall economic growth.”
FADA’s appeal has been forwarded to the finance minister, the chair of the GST Council, all GST Council members, the ministry of heavy industries, which supervises the automobile sector and the ministry of road transport & highways. This action underscores the urgency and significance of the issue.
Over the past few years, the prices of various two-wheelers have risen significantly. This surge in prices can be attributed to multiple factors, including the rising cost of raw materials, stricter emission norms and higher taxes and levies.
For instance, the price of Honda Activa has escalated from Rs 52,000 in 2016 to Rs 88,000 in 2023. Similarly, the Bajaj Pulsar has witnessed a substantial increase from Rs 72,000 in 2016 to Rs 1,50,000 in 2023. The Hero Splendor and TVS Jupiter have also experienced considerable price hikes over the same period, with their prices soaring from Rs 46,000 to Rs 74,801 and Rs 49,000 to Rs 88,498, respectively.
Toyota third shift
Toyota Kirloskar Motor (TKM) has announced the commencement of three-shift operations at its manufacturing facility in Bidadi from May 2023 backed by the rising demand for its existing portfolio of products and its new launches in 2022.
Three shift operations commencement is set to boost the plant’s production output by over 30 per cent and strategically meet the strong booking numbers for its entire range of product portfolio in the country.
