Budget 2020 Expectations: Bajaj Auto ED Rakesh Sharma wants GST rebate for the two-wheeler industry
Budget 2020 Expectations: Two-wheeler industry has high expectations from the government. The industry demands reduction in the GST rates which are currently at 28%
Budget 2020, Budget 2020 Expectations, Automotive industry, Auto industry, two-wheeler industry, Bajaj Auto, Bajaj Auto, Automobile
The preparations for the Budget 2020 has almost been completed. The Budget 2020 which will be presented by the Finance Minister Nirmala Sitharaman on 1 February and it has been generating a lot of interest among people from all walks of life - be it housewives or service class or the industrialists. Yes, everybody is keeping a close eye on the budget and are expecting some relief or benefit from the finance minister.
— Zee Business (@ZeeBusiness) January 15, 2020
The auto industry, especially the two-wheeler industry has been going through very troubled times for a long time. The sector has been feeling the pinch for a couple of years now. Almost one-and-half-years ago, insurance rates had gone up. The regulation was to mandatorily install an anti-lock braking system (ABS) that increased the production cost of vehicles. After this, the prices vehicles shot up due to BS-IV and BS-VI standards.
All this has increased the running cost of the industry by at least 25%.
Bajaj Auto ED Rakesh Sharma told Zee Business that the auto industry works hard for the entire year to bring down the production costs and even a 1-1.5% reduction is a big thing for players in the industry. The sudden spike in the production cost by 20-25% has cost them, dear.
The automobile industry has been demanding that the government brings down the cost of production for the manufacturers, especially the two-wheeler sector.
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The government may reduce the GST on two-wheelers in the Budget 2020. The industry has been saying that the government has reduced the GST for vehicles and brought it to 5%. They expect that the government brings down the ST rates on petrol and diesel-run vehicles, too. The current GST rates on fossil fuel-run vehicles are 28%.
Sharma says that he has expectations that the money comes into the pocket of a common man and their confidence towards the economy increase and they start spending.
It is expected that the two-wheeler market in 2019 may go down by 14% to 1.85 cr units.