New Delhi, Oct 26 (IANS) The rollout of GST 2.0 has given a strong push to India’s two-wheeler market, with vehicle registrations in October touching 1.85 million units -- the highest monthly tally so far this year -- according to data from Vahan.
The surge reflects the combined impact of the recent GST rate rationalisation and robust festive season demand, which has revived consumer sentiment across both urban and rural India.
Industry officials said the government’s move to reduce GST on motorcycles up to 350cc from 28 per cent to 18 per cent under the GST 2.0 framework has significantly lowered prices, encouraging more buyers to make purchases ahead of Diwali.
In September, India’s two-wheeler manufacturers had already shown signs of recovery, posting a 9 per cent year-on-year (YoY) growth in dispatches and crossing the two-million mark, driven by festive buying and the tax cut.
Hero MotoCorp, the country’s largest two-wheeler maker, reported a 5 per cent rise in wholesale volumes to 647, 582 units, while registrations jumped 19 per cent to 323, 230 units in September.
Honda Motorcycle and Scooter India (HMSI) posted a modest 3 per cent increase to 505, 000 units, while TVS Motor Company recorded a healthy 12 per cent rise in volumes to 413, 000 units, helped by strong scooter sales.
Bajaj Auto’s dispatches climbed 5 per cent to 273, 000 units, and Royal Enfield, owned by Eicher Motors, posted the sharpest growth at 43 per cent with 113, 000 units.
Analysts said the festive season has further boosted demand momentum, especially after a slow start in early September during the inauspicious Shraad period.
“The combination of GST cuts, new model launches, and festive offers has clearly lifted consumer sentiment, ” said an analyst tracking the sector.
According to a report by Axis Securities, the overall auto sector showed mixed trends last month, with strong growth in two-wheelers, three-wheelers, and commercial vehicles, even as passenger car sales slipped on a year-on-year basis.