Royal Enfield’s Siddhartha Lal Pushes For 18% GST On Two-Wheelers – What It Means for India’s Global Edge News24 –

Siddhartha Lal, Royal Enfield’s Managing Director, on Saturday urged the government to adopt a uniform GST rate of 18% on all two-wheelers, calling it critical to sustain momentum. Reports suggest the revised GST structure could lower the tax on smaller bikes to 18%, while higher-capacity motorcycles may still attract higher taxation.

Currently, automobiles fall under the highest GST slab of 28%, with an additional compensation cess of 1% to 22% levied depending on the vehicle category.

Lal took to social media, saying Indian brands already rule the small-capacity bike segment worldwide. He added that the industry is now pushing further into mid-capacity motorcycles.

“By delivering exceptional value, we are drawing riders worldwide to shift from larger, higher-displacement machines to Indian-made mid-size motorcycles. To sustain this momentum, a uniform GST of 18 per cent across all two-wheelers is critical,” Lal said.

Hello Everyone, this is an urgent and heartfelt appeal to our respected policy makers and the public regarding the recent GST announcement. Please spare a few minutes time to go through this – the Indian motorcycling industry needs your support!#TwoWheelsOneGST #MakeInIndia pic.twitter.com/Hl1Iyfo94z

— Sid Lal (@sidlal) August 30, 2025

A part of Eicher Motors Ltd, Royal Enfield is a leader in mid-sized motorcycles.

“Lowering GST for less than 350cc will help broaden access, but raising GST for over 350cc would damage a segment vital to India’s global edge,” Lal stated.

“A differential rate would dramatically shrink the domestic over 350cc segment, and choke the investment needed for India to compete globally,” he added.

“Success abroad requires a wide and competitive product range and a punitive GST on over 350cc would relegate the industry to smaller capacity two-wheelers, and undermine Indian brands’ ability to build strong dealer networks and brand equity worldwide,” he said.

Lal warned that competitors from countries without such tax hurdles could capture the mid-size market abroad and eventually challenge India’s lead in smaller-capacity bikes.

He pointed out that bikes over 350cc account for only about 1% of India’s two-wheeler market.

“Raising GST on them would add negligible revenue but contract the segment. For Indian riders, these motorcycles are not luxury goods; they are efficient, affordable alternatives to cars, offering lower fuel use and maintenance – benefits that also help reduce India’s fuel imports,” Lal said.

India already leads China, Japan, Europe, and the US in two-wheelers, he said.

“A uniform 18 per cent GST will not only secure this leadership but also enable India to dominate the global electric two-wheeler market. By achieving scale in EVs, India can establish itself as the world’s hub for next-generation mobility,” he said.

“This will anchor allied industries- from batteries to semiconductors and advanced electronics – creating a powerful manufacturing ecosystem that ensures India’s global leadership for decades to come,” Lal added.

Lal said the two-wheeler industry is Make in India’s biggest success, and the only manufacturing sector where Indian brands lead worldwide.

The GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to consider shifting to a two-slab structure by scrapping the 12% and 28% rates. At present, GST has four slabs – 5%, 12%, 18% and 28%.

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