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FADA calls for reduction in GST rates to 18% for entry-level two-wheelers

15 Sep 2023 Evaluate

The Federation of Automobile Dealers Associations (FADA) asked for the reduction in Goods and Services Tax (GST) rates from 28 per cent to 18 per cent for entry-level two-wheelers that is the 100cc and 125cc segment, and said the segment has not recovered from the impact of COVID-19 pandemic. 

FADA President Manish Raj Singhania said in the ongoing fiscal so far, while the retail sales of total vehicles have grown by around 7 per cent, the entry-level two-wheeler segment is yet to witness the robust growth seen. He said ‘although the two-wheelers segment experienced year-on-year growth, we are still 20 per cent behind the pre-COVID levels.’

According to FADA data, in the April to August period of FY24, two-wheeler sales were at 65,15,914 units as against 62,35,642 units, a growth of 4.49 per cent. Total vehicle sales across categories in the April-August period of the ongoing fiscal stood at 91,97,045 units, as compared to 86,15,337 units in the corresponding period last fiscal, a growth of 6.75 per cent.


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