Stop treating two-wheeler as luxury product, urges Automakers

Suzuki Motorcycle India has urged the government to reduce the Goods and Services Tax levy on two-wheelers. SMI Managing Director Koichiro Hirao said that two-wheelers should not be treated as a luxury product.

Greater Noida (UP): Suzuki Motorcycle India (SMI) on Wednesday sought reduction in Goods and Services Tax (GST) levy on two-wheelers.

Speaking on the sidelines of Auto Expo SMI Managing Director Koichiro Hirao said, "GST rates for two-wheelers need a re-look. It should not be treated as a luxury product".

Previously, Hero MotoCorp, country's largest two-wheeler maker made a similar appeal to the government.

Two-wheeler makers believe this move would help the government contain potential revenue loss, and at the same time provide relief to around 20 million probable two-wheeler buyers across the country.

The automobile industry has long been demanding a reduction in GST rate from the present 28 per cent to 18 per cent.

To begin with, some industry leaders appealed to the government to have a separate slab for two-wheelers below 150 cc category at 18 per cent GST.

BS-VI vehicles cost more

SMI Vice President Devashish Handa said BS-VI compliant vehicles are expected to cost 10-13 per cent more, even though the company is yet to decide on the final pricing.

Talking about market trends, Handa said two-wheeler sales in the country had declined by about 15 per cent in FY19-20, compared to the previous fiscal, even though the company has seen growth on the back of a strong product portfolio.

(With Inputs from PTI)