What’s the news: After the implementation of GST 2.0, the two-wheeler market has gained momentum; Registrations in October have reached close to 18.5 lakh and purchases have increased due to festivals.
New Delhi: After GST 2.0, there has been an increase in two-wheeler sales in the country. Vehicle registrations in October reached almost 18.5 lakh units, which is said to be the highest monthly figure this year. The festive season saw a return of consumer enthusiasm in both urban and rural areas.
The government has reduced the GST rate on motorcycles (up to 350cc) from 28% to 18% under GST 2.0. This led to a drop in prices and many manufacturers launched models and offered offers ahead of the festivals. Companies and officials have cited this change as a factor in increasing sales.
Its effect was visible on common buyers and the market in both urban and rural areas. Due to low tax, the prices of bikes became cheaper and the interest of buyers increased. Demand for scooters and small motorcycles was high, especially during festivals, which led to increased traffic at dealerships and showrooms.
Some important figures in brief: Registrations in October around 18.5 lakh units; Total dispatches in September topped 2 million and grew by nearly 9% year-on-year; September volumes of major manufacturers—Hero MotoCorp wholesales 647,582 and registrations 323,230; HMSI 505,000; TVS 413,000; Bajaj Auto Rs 273,000; Royal Enfield 113,000 (43% growth). In the auto sector, two-wheeler, three-wheeler and commercial vehicles grew, while passenger car sales declined.
This change in the rates of GST 2.0 has been implemented and its effect was visible in sales during festivals. In the months ahead, it will be seen how the new tax structure affects the market movements and what new models or offers the companies come up with.
In short: The two-wheeler market gained momentum after GST 2.0. GST on motorcycles (up to 350cc) reduced from 28% to 18%. Registration in October was around 18.5 lakh units. Dispatches top 2 million in September and rise 9% YoY. There was a difference in the September volumes and segmental trends of the companies.