Bajaj Auto's Rajiv Bajaj Calls for GST Cut to Revive Two-Wheeler Sales
Bajaj Auto MD Urges GST Reduction to Fuel Commuter Motorcycle Sales
4 May 2024
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Neelesh Bachani
Rajiv Bajaj, Managing Director of Bajaj Auto, advocates for a reduction in GST rates from 28% to 18% for commuter motorcycles. He emphasizes the need to align India's tax policies with those of ASEAN countries, citing lower GST equivalents of 8% to 14% in the region.
Bajaj highlights challenges in the commuter motorcycle segment, including price hikes due to excessive regulations and taxation. Despite advancements in emission norms, he stresses the importance of a balanced approach to taxation to ensure competitiveness and affordability in the market.
Amid discussions on taxation, Bajaj Auto launches the Pulsar NS400Z, the latest addition to its renowned Pulsar lineup. Despite industry challenges, Bajaj Auto reports a notable 35% year-on-year increase in net profit, reflecting resilience and growth in the face of market dynamics.
Rajiv Bajaj, the Managing Director of Bajaj Auto, recently highlighted the challenges faced by the commuter motorcycle segment, attributing the price hikes to excessive regulations and high taxation. He emphasized the need for a reduction in GST rates to alleviate the burden on consumers. Bajaj suggested reconsidering the current 28% tax rate, advocating for a reduction to 18%. He underscored the importance of aligning India's tax policies with those of ASEAN countries, where GST equivalents range from 8% to 14%.
Addressing reporters at the new 400cc Pulsar motorcycle launch event, Bajaj expressed concern over the sluggish recovery of two-wheeler volumes to pre-COVID-19 levels. He urged the Union government to implement tax reforms to stimulate demand and bolster the automotive industry. Despite advancements in emission regulations, Bajaj emphasized the need for a balanced approach to taxation, ensuring competitiveness and affordability in the market.
Highlighting a disparity between regulatory standards and tax policies, Bajaj emphasized the need for coherence in government measures. While acknowledging the importance of stringent emission norms, he called for a reconsideration of the GST rate to foster growth and investment in the sector. Bajaj's call for tax reduction aligns with industry sentiments, aiming to enhance affordability and accessibility for consumers.
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Amid discussions on taxation, Bajaj Auto introduced its latest addition to the renowned Pulsar lineup, the Pulsar NS400Z, priced at an introductory rate of Rs 1.85 lakh. With a track record of selling 18 million Pulsars since its inception in 2001, Bajaj Auto has significantly contributed to India's two-wheeler market. The Pulsar series has been instrumental in generating substantial revenue, amounting to Rs 10,000 crore over the years.
Bajaj Auto's financial performance reflects resilience and growth, evident in its recent quarterly results. Despite industry challenges, the company reported a notable 35% year-on-year increase in net profit, reaching Rs 1,936 crore in the quarter ending March. This achievement underscores Bajaj Auto's strategic initiatives and market positioning, reaffirming its status as a leader in the Indian automotive landscape.
In conclusion, Rajiv Bajaj's advocacy for tax reforms in the commuter motorcycle segment reflects broader industry concerns regarding regulatory burdens and affordability. As Bajaj Auto continues to innovate and expand its product offerings, its latest introduction, the Pulsar NS400Z, demonstrates a commitment to meeting consumer demands while navigating evolving market dynamics.
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