Uniform GST for Two-Wheelers: Royal Enfield MD Urges Government to Preserve India’s Global Edge

The Managing Director of Royal Enfield, Siddhartha Lal, has made an urgent request to the government for the imposition of a uniform 18 per cent Goods and Services Tax (GST) on all two-wheelers. He warned that having different tax rates for different types of bikes could hurt India’s position as a global leader in the motorcycle industry.

Lal also shared a post on platform ‘X’ (formerly Twitter), in which he emphasised that the two-wheeler industry is one of the biggest success stories of the Make in India programme. It is also the only manufacturing area where Indian brands are ahead on a global level. He explained that this success is due to the industry’s large scale, low costs, and good quality, strong factors that have caught the attention of several international companies to manufacture their bikes in India.

He said, “Hello, Everyone, this is an urgent and heartfelt appeal to our respected policymakers and the public regarding the recent GST announcement. Please spare a few minutes’ time to go through this – the Indian motorcycling industry needs your support!”

Hello Everyone, this is an urgent and heartfelt appeal to our respected policy makers and the public regarding the recent GST announcement. Please spare a few minutes time to go through this – the Indian motorcycling industry needs your support!#TwoWheelsOneGST #MakeInIndia pic.twitter.com/Hl1Iyfo94z

— Sid Lal (@sidlal) August 30, 2025

The GST council meeting that is scheduled to be held on September 3-4, 2025, is anticipated to discuss GST reforms, including revisions in GST slabs and several others. This meeting may result in a reduction of GST rates on several Indian goods, including motorcycles. GST cut from 28 per cent to 18 per cent can be seen on motorcycles with an engine capacity of up to 350cc, but motorcycles with engines over 350 cc could face a higher tax rate of 40%, as they would be considered luxury items.

Siddhartha Lal cautioned the government that this action would have negative and damaging implications on the mid-capacity motorcycle market of the country. He said, “Lowering GST for under-350cc will help broaden access, but raising GST for above-350cc would damage a segment vital to India’s global edge.”

He warned that having different GST rates would impact the country in the following ways:

• Hurt investment and growth by making the market smaller for bikes over 350cc, which would reduce the revenue needed to compete in international markets.
• Limit global success by forcing Indian companies to focus only on smaller bikes, making it hard to build strong international brands.
• Give an edge to foreign companies, as they come from countries without such tax issues and could take over the mid-size motorcycle market worldwide.

Lal highlighted that motorcycles of more than 350 cc contribute to only 1% of the country’s two-wheeler market. Hence, increasing GST rates on these will generate very minimal revenue but will impact the market a lot more. He then emphasised the importance of these bikes, that they are fuel-efficient alternatives to cars and are cheaper to afford in comparison to other luxury vehicles. Also, it helps reduce the fuel burden on the country. He said, “India already leads China, Japan, Europe, and the U.S. in two-wheelers. A uniform GST will not only preserve this leadership but also position India to dominate the global electric two-wheeler market.”