Two-wheeler maker Bajaj Auto Managing Director Rajiv Bajaj called out higher taxation and norms in the Indian automobile market leading to expensive vehicles. Speaking on the launch of the Pulsar NS400Z Rajiv asked the government to reconsider reducing the GST to 12 or 18 per cent from 28 per cent.

“Earlier, the 150 cc was ₹71,000 ex-showroom price, the same motorcycle today is up to ₹1,20,000. This kind of dramatic price change is owing to different aspects but the most that I have called out is the over-regulation of the market. In India why do we have to pay a GST of 28 per cent on vehicles meant for the common man? In all the ASEAN countries, the equivalent of GST is between 8 and 14 per cent. The government should reconsider and the GST should be 18 or 12 per cent,” he said.

Rajiv pointed out that the company has adopted a dual strategy. “The government has made motorcycles and automobiles in India unduly expensive with higher taxation and very high regulatory norms which has caused motorcycles to become so expensive. What we can do as a manufacturer is lower the pain by reducing the running cost of the two-wheelers,” added Bajaj.

Bajaj Auto, which introduced the Pulsar brand in 2001, is targeting to increase its market share in the higher capacity engines with the launch of Pulsar NS 400 with a 373 cc engine. The motorcycle is available at an introductory price of ₹1,85,000 with bookings starting at ₹5,000. The company plans to begin exports of the motorcycle in the next six months.

‘The segment is the fastest growing segment above 125 cc and going up to 655 cc. Between domestic and export more than 1.6 million vehicles are sold every year in the category. We have a lot of room to grow,” said Rakesh Sharma, Executive Director of Bajaj Auto.

CNG bike to be launched

The company will launch India’s first CNG bike on June 18 and is aiming to focus on entry-level consumers.

“We have tried different approaches at the bottom half of the pyramid but the customer is very focused on fuel economy. Bajaj Auto is taking a hard shot at it from June which is the CNG bike. It will take the battle from the top half to the bottom half based on solid dramatically improved proposition,” added Rakesh Sharma.

Related Topics