Budget 2024: The traditional two-wheeler industry is one of the biggest and most crucial sectors in India’s economy. Reportedly, the two-wheeler industry contributes around 8 per cent to India’s GDP and employs more than 10 million people directly and indirectly. Despite being one of the biggest contributors, the two-wheeler industry has encountered various challenges in recent years which include rising component costs and ever-increasing competition from electric vehicle manufacturers.
All Expected For Two-Wheeler Industry
The Union Budget 2024 is scheduled to be tabled on Feb 1, 2024. In this budget, the government is expected to announce several new policies and positive changes to the existing ones. The new measures will support the traditional two-wheeler industry. Here’s all that is expected in budget 2024 for the two-wheeler industry.
Reduction in GST Rates
The current GST rate on two-wheelers is 28%. The industry has been demanding a reduction in GST rates to 18%, which would make two-wheelers more affordable and boost sales.
Reduction in Input Costs
The Government is expected to make a significant reduction in the cost of components used to manufacture traditional two-wheelers which will help the industry to register a positive growth.
Incentives for Scrappage
The government could introduce a scrappage scheme for old two-wheelers, which would encourage people to buy new and more fuel-efficient vehicles. This would help to reduce pollution and boost sales in the two-wheeler industry.
Infrastructure Development
The government could invest in improving road infrastructure which would make it easier and safer to ride two-wheelers. This would also help to boost sales in the industry.
Support for Research and Development
The government could provide financial assistance to two-wheeler manufacturers for research and development of new technologies such as electric and hybrid vehicles. This would help the industry to stay competitive in the long term.
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