GST cut will help 2- wheeler market: Honda

New Delhi, Sept. 20: Honda Motorcycle and Scooter India ( HMSI) has supported calls from various industry quarters for reduction in GST on twowheelers, saying the move would act as a ' tailwind' for reviving the sector which has been facing challenging business environment.

In an interview with PTI, a senior official of the Japanese two- wheeler major said the sector has been currently facing various headwinds due to economic slowdown that has hampered the growth of the sector.

"We are also confident that any such move that will increase affordability for the buyer and which adds to their savings, why not ( bring it)," HMSI director sales and marketing Yadvinder Singh Guleria said.

He was replying to a query whether the reduction in GST on two- wheeler segment would be helpful in reviving the sector.

"It will definitely help and act as a tailwind for the industry against what we are seeing today, the headwinds from multiple sides," Guleria noted.

Elaborating on the situation, he said that people want to preserve cash these days due to economic slowdown related uncertainties. Despite that they are still willing to take personal mobility options due to the Covid- 19 situation and it will help if affordability of owning a twowheeler improves, he said.

For long, the two- wheeler industry has been demanding a reduction in GST on two- wheelers from 28 per cent to 18 cent. They argue that a two- wheeler is basic necessity for transportation of medium income group households.

Last month, even the finance minister said the segment merits a GST revision.