Minister of Road Transport and Highways Nitin Gadkari
Credit: PTI Photo
The Federation of Automobile Dealers Associations (FADA) met with the Minister of Road Transport and Highways Nitin Gadkari to reduce Goods and Services Tax (GST) rate on entry-level two-wheelers.
Representatives of FADA, the apex national body of automobile retail industry in India, met Gadkari and made a formal appeal.
FADA gave a request letter to the minister, urging reduction of the GST rate on entry-level two-wheelers, predominantly within the 100-125 cc segment from 28 per cent to 18 per cent.
FADA President Manish Raj Singhania said, “To propel India towards becoming a 47-trillion-dollar economy by 2047, every segment of our automobile Industry must function at its zenith.”
According to him, with two-wheelers accounting for over 75 per cent of the volume and 70 per cent plus of this stemming from the entry-level category, it's imperative to address the 20 per cent plus decline we've observed since pre-Covid times.
“Reducing the GST from 28 per cent to 18 per cent for entry-level two-wheelers is more than just an economic strategy; it's about empowering the common man and boosting rural mobility,” he added.
While several categories within the auto sector have displayed commendable recovery post the Covid-19 pandemic, the entry-level two-wheeler sector remains notably affected. FADA believes that a GST revision would significantly alleviate the burden on potential buyers, especially in rural India, and catalyse the resurgence of this vital industry segment.
The FADA has urged Gadkari to grace the 5th Auto Retail Conclave as the Chief Guest. Scheduled on 14 September 2023 at Le Meridien, New Delhi, the conclave is anticipated to be a defining moment in shaping the future of auto retail in India.