Besides, the extension of FAME-II advantages to e-bicycles was also sought by the Hero Cycles. “The budget must focus on reviving slumping demand across the country through a series of measures including re-adjusting GST slab rate to put more disposable income into the hands of people,” stated Pankaj M Munjal, Chairman, Hero Motors Company (HMC).
He also emphasized the fact that the bicycles are extensively used by rural populations & low-paid group and so they should be made less pricey by cutting down the current GST rate of 12% and putting the product under the lowest GST rate slab of 5%.
“Similarly, we also want the government to extend FAME-II benefits to electric bicycles,” Munjal added.
Suspension of higher GST rate from bicycles would be a big aid for million of peoples who come under the low-income earners, the chairman expressed.
He also expressed that the government should boost the electric bicycles the way electric cars are being promoted. The need to promote e-bicycles is equally important as the promotion of electric cars because they are eco-friendly as well as space- friendly.
“We hope the government recognises the need to promote electric bicycles as much as they need to promote electric cars. While electric cars address the problem of pollution, they do not address the concern of traffic congestion in Indian cities,” Munjal said.
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Electric bicycles knock the problem of space and traffic congestion while eliminating the harmful emissions that hamper the environment.
Munjal underlined that e-cycles are both eco-friendly & space-friendly as well. And it also provides a feasible solution to the problem that arises due to insufficient charging infrastructure as they can be conveniently pedalled in case of battery discharge. Another highlight by Munjal includes the extension of FAME-II benefits to electric bicycles as these subsidy benefits will act like aid for the manufacturers to offer easy-affordable products to the consumers.
It is noteworthy that cycle is the main mode of commutation among the rural population as well as people living in straitened circumstances in urban areas also. So, the curtailment in the GST rates on bicycles from 12% to 5% will inevitably increase the purchasing power of people under such classes. This will save the hard-earned pockets of people and revive the rural markets.
Promotion of e-cycles will give a green & space compatible asset for wayfaring, to the society. FAME-II benefits to electric bicycles will be beneficial for manufacturers as this will empower them to offer the budget-friendly cycles to the users.
