Honda Pushes for Tax Cuts to Boost India's Two-Wheeler Growth

Yogesh Mathur, a senior executive at Honda Motorcycle and Scooter India, emphasizes that two-wheelers are essential, not luxury, in India. He advocates for tax reduction and income tax rationalization to increase affordability and spending, especially amidst compliance-related cost hikes and stagnant rural demand.

In a recent interview, Yogesh Mathur, Director Sales and Marketing at Honda Motorcycle and Scooter India, highlighted the growing necessity for reducing taxes on two-wheelers. Mathur argues that these vehicles are crucial for personal mobility in India's congested urban areas, rather than being viewed as luxury items.

Mathur noted that high taxes and regulatory compliance have pushed the cost of two-wheelers considerably higher, straining affordability. A drop in rural demand further complicates the scenario, pressing for government intervention through rationalization of GST and income taxes.

Market analysts anticipate a single-digit growth rate for the two-wheeler sector in the next fiscal year. Mathur believes that upcoming wedding seasons and increased rural activities post-election could spur demand, but stresses immediate governmental action for longer-term stability.

(With inputs from agencies.)