FADA seeks reduction in GST rates for entry-level two-wheelers to 18%
- As per FADA, though the two-wheeler segment experienced year-on-year growth, it is still 20% behind the pre-Covid levels.
The Federation of Automobile Dealers Associations (FADA) on Thursday sought reduction in GST rates on entry-level two-wheelers to 18 per cent, saying that the segment has still not recovered from the impact of Covid-19 pandemic. Expressing his views at the Auto Retail Conclave, FADA President Manish Raj Singhania said that in the ongoing fiscal so far, while retail sales of total vehicles have grown by around 7 per cent, robust growth for the entry-level two-wheeler segment is yet happen.
He added that though the two-wheeler segment experienced year-on-year growth, the segment is still 20% behind the pre-Covid levels. Singhania's views were present in the presence of Union Road Transport and Highways Minister Nitin Gadkari, who was the chief guest at the function. Turning to the minister, he said, “That's why FADA strongly urges honourable minister to help us get a reduction in GST rate from 28 per cent to 18 per cent for entry-level two-wheelers that is the 100cc and 125cc segment."
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He further said that this would not just be a policy adjustment, it would act as a social economic catalyst, especially considering that the segment constitutes 75 per cent of the total auto sales volume.
As per data provided by FADA, in the April to August period this fiscal, two-wheeler sales were at 65,15,914 units as against 62,35,642 units, witnessing a growth of 4.49 per cent. Total vehicle sales across categories during the same period stood at 91,97,045 units, as compared to 86,15,337 units sold in the corresponding period last fiscal, witnessing a growth of 6.75 per cent.
(with inputs from PTI)
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