GST Rate Cuts Rev Up Indian Two-Wheeler Market

TVS Motor anticipates a significant boost in the Indian two-wheeler market following a reduction in GST rates. The changes are set to improve affordability and competitiveness, benefiting a wide range of vehicles, with the company expecting a record festive season. TVS will pass GST benefits to consumers, enhancing market dynamics.

TVS Motor predicts a surge in India's two-wheeler market thanks to recent GST rate cuts, poised to lower vehicle acquisition costs by as much as 40-50% after years of stringent regulations. The cuts, effective from September 22, will primarily affect petrol, LPG, and CNG vehicles under certain specifications.

Chennai-based TVS, which recently launched its NTORQ scooter, foresees the upcoming festive season as potentially record-breaking, driven by enhanced market competitiveness and accessibility. Aniruddha Haldar, Senior VP at TVS, highlighted that the GST reforms will benefit not only high-end models but also affordable scooters and EVs.

With plans to pass on GST savings to consumers, TVS is optimistic about the future. Haldar noted strong growth in the scooter segment, a key market driver, further bolstered by urbanization and increased female workforce participation, pointing toward a robust 'scooterized' environment on Indian roads.

(With inputs from agencies.)