Overregulation has led to increase in two-wheeler prices: MD Rajiv Bajaj

Bajaj Auto Managing Director Rajiv Bajaj on Friday asserted that "overregulation" in the two-wheeler segment has led to an increase in the prices of vehicles which are mainly used by the masses. While acknowledging the benefits of the latest emission norms for society, he noted that the government should consider reducing GST rates on two-wheelers from the current rate of 28 per cent.

"This kind of dramatic change in price owes itself to many things, but most of all to what I have openly called as over-regulation of the market," he said, while speaking at a product launch event.

The two-wheeler industry has been seeking a cut in GST on two-wheelers from 28 per cent to 18 per cent, saying the segment, being essential for millions, should not be categorised as a luxury item.

"Why is it that in India, vehicles like this... have to pay a GST of 28 per cent? You look at all the ASEAN countries... you talk to our friends who have come from Latam, look at Brazil, typical equivalent to GST is between 8 and 14 per cent," Bajaj stated.

He further said, "So, on one hand we want regulations at the highest level, in terms of say emission, which is fine as a manufacturer, as a person in society, as a father, I am very happy for clean air. But then, maybe at the same time, the government should reconsider the GST... It should be 18 per cent or 12 per cent. It should not be 28 per cent".