TL;DR
The Indian motorcycle industry is concerned that the 40% GST on bikes over 350cc could negatively impact demand and future investments.
Leading players in India's premium motorcycle industry, including Royal Enfield and Eicher Motors, have voiced concerns regarding the 40% Goods and Services Tax (GST) levied on bikes exceeding 350cc. They caution that such a high tax slab risks significantly hindering domestic demand and potentially derailing future investments into India for both local and global markets.
This issue was highlighted during a recent industry event, where executives articulated that the substantial tax burden adds new friction to an already sensitive market. The high GST on large-capacity motorcycles could dampen consumer enthusiasm for premium models and impact manufacturers' profitability, discouraging them from expanding production or introducing new models designed for the Indian market.
The industry's appeal underscores the delicate balance between government revenue objectives and fostering growth in a niche yet significant segment of the automotive market. Addressing these tax concerns could be crucial for maintaining a vibrant premium motorcycle sector and attracting continued investment, contributing to India's overall manufacturing and export potential.
