18% GST On All Two-Wheelers Critical: Royal Enfield's Siddhartha Lal

New Delhi: Royal Enfield's managing director Siddhartha Lal took to social media on Saturday, urging the government to implement a uniform 18 per cent GST for all two-wheelers. Lal said a uniform GST of 18 per cent across all two-wheeler segments is critical to sustain momentum.

The GST Council is planning to revise the taxation on two-wheelers. Under the revised tax regime, when approved, small motorcycles under 350 cc will attract 18 per cent GST and motorcycles over 350 cc will be deemed luxury goods, attracting 40 per cent GST. The decision on GST revision of several goods and services, including automobiles, is slated to be announced in September.

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Royal Enfield is the market leader in the 350-500 cc category of motorcycles with the J-Series (Classic, Bullet, Hunter, Meteor) making the lion's share of sales. Royal Enfield also manufactures a bunch of motorcycles in 450-cc and 650-cc platforms, which are set to be impacted with the GST revision. In 2024, Royal Enfield hit a record high with 8.57 lakh units sold in the domestic market.

Lal said, “Indian brands already dominate the small-capacity segment worldwide, and through heavy investment we are now making deep inroads 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.”

Lal urged the government to maintain a uniform GST of 18% across all two-wheelers to sustain the momentum. ‘Lowering GST for under-350cc will help broaden access, but raising GST for above-350cc would damage a segment vital to India's global edge,” Lal remarked.