Sidhathha Lal, CEO of Eicher Motors and the mother company Royal Enfield, has stabbed the government to implement a 18 % uniform GST rate on all wheels.
In a post on LinkedIn, Lal wrote, “Hello everyone, this is an urgent and hearty call to our respected policy makers and the public regarding the last announcement of the tax and services tax. Please avoid a few minutes to go to this – Indian motorcycle industry needs your support!
Lal, with the support of a detailed statement issued by the Royal Enfield, highlighted that the two -wheel -wheel -wheel -wheel -live India industry is the “most successful success story for the Make in India” and the only industrial sector led by Indian brands worldwide. With government support and a vast local base, Indian manufacturers have set standards in technology, cost efficiency, distribution, and even attracting global competitors to manufacturing in India.
He pointed out that Indian brands are already dominating the small capacity sector worldwide and that they are now launched in medium -capacity motorcycles. “By providing an exceptional value, we draw cyclists around the world to transform from the largest displacement machines to motorcycles of an Indian medium size,” Lal pointed out.
To keep this momentum, emphasize the need for a 18 % uniform commodity and services tax through all wheels. According to Lal, Reducing GST on the Sub-350CC motorcycles will expand access, but raising goods and services tax on machines that exceed 350 cm will severely damage a decisive piece to the leadership of India International.
He warned that a tax system is divided:
- Cripple investment and size, by reducing the 350 cc sector.
- Restricting global access, undermining India’s ability to build strong merchant networks around the world.
- The opening of foreign competitors, allowing competitors to control the medium -sized motorcycle market.
More importantly, Lal emphasized that motorcycles over 350 cc constitute about 1 % of the bipolar India market, which means that the commodity tax and high services on them will add minimal revenues but contract with the sector. He said: “For Indian passengers, these motorcycles are not luxurious goods. They are effective alternatives and affordable prices for cars, which provides a decrease in the use and maintenance of fuel – the benefits that also help reduce fuel imports in India.”
Looking at the future, Lal argued that a unified GST 18 % will not only secure the current world status in India but also in the country’s position as a leading company in the global electricity market with bilateral wheels. “India is already leading China, Japan, Europe and the United States in two wheels. The unified GST will enable 18 % of India to control the global electrical wheel market and establish itself as a global center to move the next generation,” said.
He added that this will prove allies – from batteries to semiconductor and advanced electronics – which creates a strong environmental system for manufacturing that can secure the World leadership of India for “upcoming decades”.
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