Two-wheeler prices have gone up due to overregulation: MD Rajeev Bajaj

Bajaj Auto managing director Rajeev Bajaj on Friday asserted that “overregulation” in the two-wheeler segment has led to an increase in the prices of vehicles that are mainly used by the public. Acknowledging the benefits of advanced emission norms for the society, he noted that the government should consider reducing the GST rate on two-wheelers from the current rate of 28 per cent.

“Such a dramatic change in price can be attributed to a number of things, but the biggest one is what I openly call over-regulation of the market,” he said while speaking at a product launch event.

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The two-wheeler industry wants to reduce GST on two-wheelers from 28 per cent to 18 per cent, saying the segment, a necessity for millions, should not be classified as a luxury item.

“Why is it that in India, such vehicles have to pay… 28 per cent GST? You look at all the ASEAN countries… you talk to our friends who have come from Latam, look at Brazil, the typical GST equivalent is between 8 and 14 per cent. ,” Bajaj said.

He continued, “So, on the one hand, we want regulation at a higher level, say in terms of emissions, which as a producer, as a person in society, as a father, I’m very happy for clean air. But then, maybe the same. At times, the government should reconsider GST… It should be 18 per cent or 12 per cent not 28 per cent.”

Date of first publication: 04 May 2024, 11:25 AM IST