GST 2.0 and Festive Demand Drive Record Two-Wheeler Sales
India’s two-wheeler market hit a new high in October, with registrations reaching 1.85 million units – the highest monthly figure this year, according to Vahan data.
Key Takeaways
- October two-wheeler registrations hit 1.85 million units, a record for 2024
- GST cut on motorcycles up to 350cc (28% to 18%) boosted affordability
- Festive season demand accelerated consumer purchases
GST 2.0 Impact and Market Revival
The rollout of GST 2.0 has significantly boosted India’s two-wheeler market. The recent GST rate rationalisation, combined with strong festive demand, has revived consumer sentiment across both urban and rural areas.
Government’s decision to reduce GST on motorcycles up to 350cc from 28% to 18% under the GST 2.0 framework has substantially lowered prices, encouraging more buyers to make purchases ahead of Diwali.
September Performance Sets Stage
In September, India’s two-wheeler manufacturers had already shown recovery signs, posting 9% year-on-year 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% rise in wholesale volumes to 647,582 units, while registrations jumped 19% to 323,230 units in September.
Honda Motorcycle and Scooter India (HMSI) posted a modest 3% increase to 505,000 units, while TVS Motor Company recorded a healthy 12% rise in volumes to 413,000 units, helped by strong scooter sales.
Bajaj Auto’s dispatches climbed 5% to 273,000 units, and Royal Enfield, owned by Eicher Motors, posted the sharpest growth at 43% with 113,000 units.
Festive Momentum Builds
Analysts noted 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.
