Terming 2018 as a challenging year, Hero MotoCorp Chairman Pawan Munjal on Wednesday urged the government to reduce goods and services tax (GST) on bikes and scooters as it would provide the much-needed relief to two-wheeler customers across the country.
"Given that two-wheelers provide basic mobility to the masses, there is an urgent need to reduce the GST rate on two-wheelers from the 28 percent bracket of ‘luxury goods’ to that of 18 percent for mass usage items," Munjal said in a statement.
His comments come after the auto company sold 4,53,985 units in December 2018, compared to 4,72,731 units in the same period last year.
The company, which ended last year with record sales of over eight lakh units, said it was absolutely imperative to ensure growth in the auto sector to create and sustain inclusive economic growth.
In the April-December period of the current fiscal, Hero MotoCorp sold a total of 60,37,901 units and in the calendar year of 2018, it sold 80,39,472 units of bikes and scooters, registering a growth of 11 percent over 2017.
Munjal, in the statement, said "the cost of two-wheelers will further go up once the new set of regulations around safety comes into force, followed by the transition to BS-VI emission norms. All these will put severe stress on the extremely cost-sensitive commuters, for whom the two-wheeler is a lifeline."
On sales outlook for the remaining part of the fiscal, he said, "With improved liquidity in the market, and the upcoming festive season in many parts of the country, the industry is expecting a positive turnaround in the fourth quarter."
At 12:05 PM, Hero MotoCorp shares were down 2.6 percent at Rs 3,047 on the Bombay Stock Exchange.
(With inputs from PTI)
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