Honda joins Hero and Bajaj in calling for lower GST rate on two-wheelers
Honda Motorcycle and Scooter India, the country's second-largest two-wheeler manufacturer in terms of volume, has called for a reduction in the Goods and Services Tax (GST) rate on two-wheelers to make them more affordable.
At present, two-wheelers with an engine capacity of up to 350cc attract a GST rate of 28%. There is an additional compensation cess of 3% on the models having an engine capacity of more than 350cc.
Top original equipment manufacturers (OEMs) like Hero MotoCorp and Bajaj Auto have urged the government in the past to lower the GST rate on two-wheelers to spur demand in the segment.
India is the largest two-wheeler market in the world when it comes to volume. According to data from the industry body Society of Indian Automobile Manufacturers (SIAM), two-wheeler wholesales jumped 13.3% year-on-year (y-o-y) at 1,79,74,365 units in FY24 from 1,58,62,771 units in FY23.
