Tightened regulations drive up two-wheeler prices: Bajaj Auto MD Rajiv Bajaj

Bajaj Auto MD Rajiv Bajaj criticizes "over regulation" in the two-wheeler segment, blaming it for price hikes affecting mass-market vehicles. Despite recognizing the benefits of emission norms, he advocates for reducing the 28% GST rate, arguing that it should not be categorized as a luxury item. Bajaj compares GST rates in Southeast Asia and Latin America, which he claims are significantly lower than India's, where it ranges from 8-14%. He suggests the government consider lowering GST on two-wheelers to 18% or 12% to balance regulation with affordability.

Bajaj Auto Managing Director Rajiv Bajaj on Friday asserted that ''over regulation'' in the two-wheeler segment has led to increase in the prices of vehicles which are mainly used by the masses.

While acknowledging the benefits of the latest emission norms for the society, he noted that the government should consider reducing GST rates on two-wheelers from the current rate of 28 per cent.

''This kind of dramatic change in price owes itself to many things, but most of all to what I have openly called as over regulation of the market,'' he said, while speaking at a product launch event.

The two-wheeler industry has been seeking a cut in GST on two-wheelers from 28 per cent to 18 per cent, saying the segment, being essential for millions, should not be categorised as a luxury item.

''Why is it that in India, vehicles like this... have to pay a GST of 28 per cent? You look at all the ASEAN countries... you talk to our friends who have come from Latam, look at Brazil, typical equivalent to GST is between 8 and 14 per cent,'' Bajaj stated.

He further said: ''So, on one hand we want regulations at the highest level, in terms of say emission, which is fine as a manufacturer, as a person in society, as a father, I am very happy for clean air. But then, maybe at the same time, the government should reconsider the GST... It should be 18 per or 12 per cent. It should not be 28 per cent''.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)