Bajaj Auto MD Calls for Reduced GST on Commuter Motorcycles Amid Regulatory Challenges

Rajiv Bajaj, the head of Bajaj Auto, has recently spoken out about the high taxes on commuter motorcycles. He believes that these bikes have become too expensive due to strict regulations and high taxes. During the launch of a new bike called Pulsar, Bajaj suggested that the government should reduce the GST (Goods and Services Tax) on motorcycles from 28% to 18% to make them more affordable for people who need them.

Addressing a gathering of reporters and industry stakeholders, Bajaj pointed out that the two-wheeler sector has yet to see sales volumes recover to pre-pandemic figures. He emphasized the need for a balanced approach that considers both environmental standards and fiscal policies that do not stifle growth. "While we are committed to upholding the highest environmental standards through stringent emissions regulations, it is imperative that the fiscal environment remains conducive to growth. The current GST rate at 28% is prohibitively high," said Bajaj.

He also drew comparisons with the GST frameworks in ASEAN countries, where the rates are considerably lower, typically ranging from 8% to 14%. Bajaj suggested that India should consider revising its rates to align more closely with these international standards. "By adjusting our GST to a more competitive level, somewhere between 12% and 18%, we can foster a healthier growth environment for the automotive industry," he argued.

This appeal comes at a time when Bajaj Auto continues to perform impressively in the market. The Pulsar series, Bajaj's flagship brand, has sold 18 million units and generated revenue of Rs 10,000 crore since its launch in 2001. The sustained success of the Pulsar brand highlights Bajaj Auto's pivotal role in shaping the motorcycle industry in India.

Further underscoring the company's robust financial health, Bajaj Auto reported a substantial 35% increase in net profit for the financial quarter ending in March, with profits rising to Rs 1,936 crore, up from Rs 1,433 crore in the corresponding quarter of the previous year. Revenue from operations also showed a significant increase, growing by 29% to Rs 11,485 crore from Rs 8,905 crore in the same period last year.

These financial achievements demonstrate Bajaj Auto's strong market presence and effective business strategy despite the challenges posed by current tax policies and regulatory environments. Bajaj's call for tax reform is seen as part of a wider strategy to ensure sustained growth and competitiveness in the global market, where fiscal policies play an essential role in shaping business dynamics.