Royal Enfield Urges Unified GST for Two-Wheelers to Secure India's Global Motorcycle Leadership

Royal Enfield, a mid-size motorcycle manufacturer, has urged the Indian government to establish a uniform GST rate for two-wheelers, including higher capacity bikes. Currently, the sector faces a 28% GST, the highest slab, with additional compensation cess.

Eicher Motors Executive Chairman Siddhartha Lal remarked that the existing structure could impede growth in the over-350cc segment, crucial for global competitiveness. Lal emphasized that a consistent 18% GST across all capacities is essential to support the industry's growth and maintain India's lead in the segment.

Lal cautioned against higher GST on larger bikes, which threatens to constrict domestic markets and investment. He highlighted that these bikes are efficient and offer alternative mobility solutions. The upcoming GST Council meeting could determine the future taxation strategy.