Hero MotoCorp, country’s largest two-wheeler maker called for a reduction in GST rates on bikes and scooters to 18 percent which is currently 28 percent. Last year the company which ended with record sales of over eighty lakh units, said that the reduction in tax would prove to be a relief for the two-wheeler customers across the country.
“Given that two-wheelers provide basic mobility to the masses, there is an urgent need to reduce the GST rate on two-wheelers from the 28 percent bracket of ‘luxury goods’ to that of 18 percent for mass usage items,” Hero MotoCorp Chairman Pawan Munjal said in a statement.
He explained that the tax reduction would not only help millions of two-wheeler customers but would also prove to be a great favor to the entire value chain dependent on the sector
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“It is absolutely imperative to ensure growth in the auto sector to create and sustain inclusive economic growth,” Munjal said.
He informed that with the transition to BS VI emission norms, the cost of two-wheelers would further rise.
“All these will put severe stress on the extremely cost-sensitive commuters, for whom the two-wheeler is a lifeline,” Munjal said.
Considering 2018 as a challenging year, he talked about the several challenges which this industry faced during the phase of continuing volatility in currency and commodities which slowed down the pace of growth. On the other side, the two-wheeler manufacturing industry faced not just the problems prevailing within the country but also the problems arisen in the global geopolitical and trade conflicts, which widely affected sentiments in markets and industries across the world.
The Hero MotoCorp Chairman Pawan Munjal, talking about the position of the domestic market in third quarter said that the increased cost of two-wheeler insurance just before the festive season and the prevailing liquidity crunch in the market had left a great impact on the overall of growth in the industry during the entire third quarter.
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He expressed hope for the increase in sales in the market the upcoming festive season in many parts of the country. Talking about the remaining part of the fiscal he said that the improved liquidity in the market and the upcoming festive season in many parts of the country is a ray of hope for increasing sales in the country and is expecting a positive turnaround in the fourth quarter.
In the year 2018, Hero MotoCorp sold 80,39,472 units of bikes and scooters, with a registered growth of 11 percent over 2017. The chairman informed that in the April-December period of the current fiscal, the company was a success in selling a total of 60,37,901 units. In December 2018, Hero MotoCorp sold 4,53,985 units, as compared to 4,72,731 units last year.
