Auto dealers want GST on two-wheelers reduced to 18% Federation of Automobile Dealers' Association (FADA) has requested the GST Council to reduce GST on two-wheelers from 28% to 18%. This is aimed at making two-wheelers more affordable and reviving demand in the industry.

Two-wheeler sales have declined by 20% from 13.3 lakh in 2018 to 10.7 lakh in 2022. The two-wheeler industry is facing a number of challenges, including inflation, emission norms, and a slow uptick in demand.

The two-wheeler industry is a major contributor to the Indian economy, accounting for about 14% of the total automobile market. The industry employs over 10 million people and is a major source of livelihood for many families.

In recent years, the two-wheeler industry has been facing a number of challenges, including rising input costs, emission norms, and a slowdown in demand. The rising cost of raw materials, such as steel and aluminum, has put pressure on the margins of two-wheeler manufacturers.

The implementation of stricter emission norms has also led to an increase in the cost of production. The slowdown in demand is another major challenge facing the two-wheeler industry.

This is due to a number of factors, including the rising cost of living, the slowdown in the economy, and the preference for other modes of transportation, such as cars and public transport.

The reduction in GST on two-wheelers from 28% to 18% will help to make these vehicles more affordable and will boost demand in the industry. This will have a positive impact on the economy, as it will lead to increased production, employment, and tax revenue.

In addition to the reduction in GST, the government can also take other measures to revive the two-wheeler industry.

These measures could include providing subsidies to two-wheeler manufacturers, promoting the use of two-wheelers in rural areas, and improving the infrastructure for two-wheelers.

The two-wheeler industry is a vital part of the Indian economy. The government needs to take steps to revive the industry and ensure its long-term growth.