Eicher Motors’ Siddhartha Lal Urges Government to Maintain Uniform GST on Two-Wheelers

Eicher Motors’ Siddhartha Lal Urges Government to Maintain Uniform GST on Two-Wheelers

Siddhartha Lal, Executive Chairman of Eicher Motors, has made an urgent appeal to the government, urging policymakers to maintain a uniform Goods and Services Tax (GST) structure across all two-wheelers.

Lal cautioned that any proposal to raise GST rates on motorcycles above 350cc could severely impact India’s two-wheeler industry, which has been a critical driver of the country’s global manufacturing edge.

GST Hike Could Hurt Market and Investments

According to Lal, a split tax regime would:

Restrict investment and economies of scale

Shrink India’s global competitiveness

Create an unfair advantage for foreign competitors

He added that the move would generate only negligible additional revenue for the government, while causing contraction in a premium segment that plays a crucial role in brand-building and exports.

A Segment Vital to India’s Global Edge

Eicher Motors, the parent company of Royal Enfield, has been instrumental in making India one of the largest motorcycle manufacturing hubs in the world. Lal highlighted that the premium motorcycle category (above 350cc) not only contributes to exports but also strengthens India’s image as a global leader in two-wheeler innovation and engineering.

“Raising GST on this category would be counterproductive,” Lal emphasized, warning that it would discourage domestic buyers, hurt local manufacturers, and give foreign brands a window to dominate the market.

Current GST Structure on Two-Wheelers

At present, motorcycles attract 28% GST, with proposals being discussed to impose a higher slab on larger-capacity bikes. Industry leaders, including Eicher Motors, have consistently pushed for uniform taxation across the sector to encourage growth, affordability, and long-term investments.

What’s Next?

The government is yet to take a final decision on the matter. However, with key industry voices like Eicher Motors raising concerns, the debate over a uniform GST slab for two-wheelers is expected to intensify in the coming weeks.