Key highlights
- Royal Enfield appeals authorities to revise GST structure
- Current GST rates are significantly high for bikes above 350cc
- The brand claims that the high rates are hurting global investments
India’s biggest cult motorcycle manufacturer, Royal Enfield, has written to the government authorities to reconsider the GST 2.0 rates for motorcycles above 350cc. Read below why the brand is urging the GST revision once again.
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Royal Enfield wants uniform GST rates on all bikes
As per the Royal Enfield management, the brand has recently appealed to the government authorities to revise the GST 2.0 rates for motorcycles above 350cc. The brand has urged the government to impose a uniform GST structure for all motorcycles, irrespective of their engine capacity, as the current rates are not in favour of the segment’s growth.
Royal Enfield’s top management had earlier appealed to the government not to split the GST rates for the two-wheelers. However, the government continued imposing 18% GST on the two-wheelers below 350cc, and 40% on the two-wheelers above 350cc.
As Royal Enfield has a considerable presence in the segments above 350cc, which include the new Sherpa 450 platform and the existing 650cc platform, the brand says that the high GST rates are hurting the growth of bigger segment motorcycles. Additionally, the brand says that the Indian manufacturers are losing their edge in the international market due to the high rates.
Not just the growth, but the brand also said that the GST 2.0 is also keeping away the global investors from investing in the Indian brands as they see no future for a market where the 350cc above segments are constrained by high taxes. Meanwhile, the segments below 350cc will become crowded as more brands like Bajaj will have to forcefully introduce lower capacity bikes.
