TL;DR
India's two-wheeler market sees robust growth in October, driven by GST rate reductions for sub-350cc motorcycles and strong festive season demand, leading to increased registrations and positive consumer sentiment.
India's two-wheeler market is experiencing a significant uplift, primarily driven by the implementation of GST 2.0 and a buoyant festive season. Recent data indicates a surge in vehicle registrations, reaching 1.85 million units in October, marking the highest monthly total for the year. This growth is attributed to the government's decision to reduce GST on motorcycles up to 350cc from 28% to 18%, significantly lowering prices and boosting consumer confidence ahead of Diwali.
The positive sentiment extends across both urban and rural India, with two-wheeler manufacturers reporting a recovery in dispatches. Major players like Hero MotoCorp, Honda Motorcycle and Scooter India (HMSI), TVS Motor Company, and Bajaj Auto have all recorded increased volumes. Royal Enfield notably saw a 43% growth. Analysts suggest that the combination of tax cuts, new model introductions, and festive promotions has revitalized consumer purchasing intent after a slow start in early September.
