GST Cut on two-wheelers key to boosting mobility, economy: Pawan Munjal

Hero Motocorp has welcomed the government’s proposed Goods and Services Tax (GST) reforms saying that it will serve as a “crucial enabler" providing much-needed relief to the first-time two-wheeler buyers in the Indian market.

A reduction in GST on two-wheelers will not only make them more affordable for first-time buyers but also strengthen mobility in rural and semi-urban India, where they are integral to daily life and livelihoods, Hero MotoCorp chairman Pawan Munjal said on Monday.

Welcoming the government’s proposed tax reforms, Hero MotoCorp chairman Pawan Munjal said that a potential reduction in GST on two-wheelers ahead of the September 3–4 Council meeting would be a progressive measure, making entry-level mobility more affordable and accessible to millions of Indians.

Munjal underlined the crucial role of the two-wheeler sector, noting that it powers both personal mobility and rural connectivity while also serving as a cornerstone of the Indian economy through tax contributions and widespread job creation. At present, motorcycles up to 350cc are taxed at 28 percent GST, whereas models above 350cc face the same GST rate plus an additional 3 percent compensation cess.

"The two-wheeler industry is not only a key driver of mobility but also a vital pillar of the national economy, contributing substantially to government revenues and generating employment across its value chain. By stimulating growth in this sector, the government has reaffirmed its commitment to empowering the common citizen while strengthening the foundation for long-term competitiveness under the “Make in India" vision," said Pawan Munjal, Executive Chairman, Hero MotoCorp.

At its upcoming session, the GST Council is expected to review the Centre’s reform proposal that seeks to streamline the tax structure by placing the majority of goods under two slabs—5 percent and 18 percent.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.