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SB News Digital Desk: Vehical Bajar

News Summary:

• Federation of Automobile Dealers Associations (FADA) has appealed to the government to reduce the Goods and Services Tax (GST) on entry-level two-wheelers to 18%.
• FADA believes that reducing the GST on entry-level two-wheelers will help recover the losses faced by the two-wheeler market during the pandemic.
• Currently, there has been a 7% increase in overall vehicle sales, but no growth in the sales of entry-level two-wheelers.
• FADA President Manish Raj Singhania stated that the two-wheeler market is still 20% behind pre-pandemic levels.
• FADA has also suggested that if the demand is met, the direct impact will be seen on the prices of 100cc and 125cc bikes in the entry-level segment.

Vehicle market enthusiasts can now breathe a sigh of relief as the Federation of Automobile Dealers Associations (FADA) has appealed to the government to reduce the Goods and Services Tax (GST) on entry-level two-wheelers. FADA has requested that the GST be reduced to 18% from the current 28%. The association believes that this reduction will help recover the losses faced by the two-wheeler market during the COVID-19 pandemic.

FADA President Manish Raj Singhania highlighted that while there has been a 7% increase in overall vehicle sales, the sales of entry-level two-wheelers have not shown any growth. He further emphasized that the two-wheeler market is still 20% behind pre-pandemic levels. Singhania made this plea to the government during the Auto Retail Conclave, which was attended by Union Minister Nitin Gadkari.

If FADA’s demand is met and the GST is reduced to 18% on entry-level two-wheelers, it will directly impact the prices of 100cc and 125cc bikes. Singhania revealed that 75% of auto sales come from the entry-level two-wheeler segment, making it crucial for the overall growth of the industry.