Royal Enfield welcomes government clarification on bike rentals

According to the advisory issued by the ministry of road transport to states, “Rent-a-motorcycle scheme to be implemented and licenses to all operators be considered. Two wheelers with license under rent a motorcycle scheme be allowed to drive across states on payment of relevant taxes.”

The advisory also said that under this category, motorcycles with and without gears, light motor vehicles including passenger vehicles and goods carriers, e-rickshaws and e-carts do not need an endorsement as required for commercial vehicles.

Industry sources have welcomed this clarification, as the bike rental space has been unorganised and there is ambiguity about how different state government see this traveling model.

Royal Enfield has welcomed this advisory as the company’s motorcycles are very popular with tourists planning long-distance bike rides.

"The Rent A Motorcycle Scheme will provide great fillip to the business of fleet operators, motorcycle rental companies and personalised tour organisers. Not only does this advisory seek to facilitate the setting up and functioning of motorcycle tour and rental businesses, it will also significantly enhance the ability to curate bespoke, customized rides and motorcycle tours," said a Royal Enfield spokesperson to CNBC-TV18

"Royal Enfield’s are preferred motorcycles in this space, and are used extensively in India and abroad. We welcome this directive by the government and do believe that if implemented across states, this advisory can potentially transform the custom-tour and tourism industry," spokesperson added.

The Society of Indian Automobile Manufacturers has also welcomed this clarification. "Once a state government issues a license to an operator, not only the individuals can hire these motorcycles from that operator, but now they can also ply these motorcycles, across state borders. This will provide a good impetus to the tourism industry in India and also bring in new business models of renting motorcycles across the country. SIAM has been in discussion with MORTH and is thankful to the government for issuing this advisory, as an enabler for state governments," " Rajesh Menon, Director General of the Society of Indian Automobile Manufacturers.

Bike rental start-ups on the other hand have sought more clarity. “We hope this advisory would encourage all states to implement the rent a motor cycle policy. We would like to get clarity on whether we can get an all India permit for two wheelers as well. Two wheeler rental companies also face problems in getting their insurance claims when vehicle moves inter-state”, said Vivekananda Hallekere, CEO and co-founder of Bounce, a self-driven bike rental company.