Siddhartha Lal, Executive Chairman of Eicher Motors and parent company of Royal Enfield, has made a strong appeal to the government to implement a uniform 18% GST rate on all two-wheelers.
In a post on LinkedIn, Lal wrote, “Hello Everyone, this is an urgent and heartfelt appeal to our respected policy makers and the public regarding the recent GST announcement. Please spare a few minutes time to go through this – the Indian motorcycling industry needs your support! #TwoWheelsOneGST #MakeInIndia”
Backed by a detailed statement released by Royal Enfield, Lal highlighted that India’s two-wheeler industry is the “clearest success story of the Make in India initiative”, and the only manufacturing sector where Indian brands lead globally. With government support and a vast domestic base, Indian manufacturers have set benchmarks in technology, cost-efficiency, and distribution, even attracting global competitors to manufacture in India.
He pointed out that Indian brands already dominate the small-capacity segment worldwide and are now making 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 noted.
To sustain this momentum, he stressed the need for a uniform GST of 18% across all two-wheelers. According to Lal, lowering GST on sub-350cc motorcycles will broaden access, but raising GST on above-350cc machines would severely damage a segment critical to India’s global leadership.
A split tax regime, he warned, would:
- Cripple investment and scale, by shrinking the domestic >350cc segment.
- Restrict global reach, undermining India’s ability to build strong dealer networks worldwide.
- Hand an opening to foreign competitors, allowing rivals to dominate the mid-size motorcycle market.
Importantly, Lal emphasised that motorcycles above 350cc constitute just around 1% of India’s two-wheeler market, meaning higher GST on them would add negligible revenue but contract the segment. “For Indian riders, these motorcycles are not luxury goods; they are efficient, affordable alternatives to cars, offering lower fuel use and maintenance – benefits that also help reduce India’s fuel imports,” he said.
Looking ahead, Lal argued that a uniform 18% GST will not only secure India’s current global standing but also position the country as a leader in the global electric two-wheeler market. “India already leads China, Japan, Europe, and the U.S. in two-wheelers. A uniform 18% GST will enable India to dominate the global electric two-wheeler market and establish itself as the world’s hub for next-generation mobility,” he stated.
This, he added, will anchor allied industries — from batteries to semiconductors and advanced electronics — creating a robust manufacturing ecosystem that can secure India’s global leadership “for decades to come.”
