Royal Enfield MD Siddhartha Lal seeks uniform 18% GST on all two-wheelers

Royal Enfield Managing Director Siddhartha Lal has urged the Indian government to implement a uniform 18% Goods and Services Tax across all two-wheelers, warning that a split tax regime could undermine India’s global leadership in the sector.In a post on X (formerly Twitter), Lal said securing India’s global leadership in two-wheelers required urgent action from policymakers for a uniform GST and used the hashtag TwoWheelsOneGST.

He argued that India’s two-wheeler industry is the clearest success story of the Make in India initiative and the only manufacturing sector where Indian brands lead globally. He said that backed by government support and a strong domestic base, Indian companies have built unmatched scale, quality and cost efficiency, drawing even foreign manufacturers to set up operations in the country.

Lal pointed out that Indian brands dominate small-capacity motorcycles worldwide and are now making deep inroads into the mid-capacity segment. By offering exceptional value, Indian makers are drawing global riders away from higher-displacement machines to mid-size motorcycles manufactured in India.
According to him, a uniform 18% GST is critical to sustain this momentum.While lowering GST for bikes below 350cc may broaden access, keeping a higher rate for motorcycles above 350cc would damage a segment vital to India’s global edge, as per Lal.

He warned that a differential tax regime would shrink the domestic market for larger bikes, choke investment needed to compete globally, limit India’s ability to build a strong international presence, and hand an opening to foreign competitors to dominate the mid-size segment.

Lal emphasised that a uniform tax structure would encourage investment, sustain growth and strengthen India’s global dominance in two-wheelers.

Royal Enfield might get impacted at both ends of the GST slab — its 350cc range could become cheaper, but its crucial mid-size 450cc and 650cc motorcycles (the ones driving global expansion) could get significantly more expensive if the 40% GST is approved.