Honda Motorcycle and Scooter India (HMSI) on Friday said banks should enhance lending to two-wheeler customers in order to help revive the sector.
The two-wheeler major said that even till August the industry had not witnessed any increase in lending activities by banks despite the fall in interest rates.
"Banking is one of the most important enabler for us. With couple of measures taken by the RBI and the central government, it is imperative that they (banks) would be extending loans to two-wheeler buyers which was not visible till August," HMSI Director Sales and Marketing Yadvinder Singh Guleria told reporters.
"So we hope that with more money with the banks and low interest rates, considering the reverse repo rate, the lending should be increased so that more and more customers come and purchase at a lower rate of interest," Guleria added.
He was replying to a query on what steps are needed, especially from government side, to increase demand in two-wheeler segment.
Guleria said it is of no use to think about measures like GST reduction on two-wheelers as they are not in the control of the industry.
It is better to focus on steps which the industry can take for themselves to create demand.
"Let's not talk about GST, its already too late. We don't know...there was some stuff regarding it but nothing has happened on ground...so it just confuses the customer talking about this, so just not talk about that and focus on what is in our hands," Guleria noted.
Finance Minister Nirmala Sitharaman had said that two-wheelers merit GST rate revision, but so far no announcement has been made for lowering the tax.
The two-wheeler industry has been demanding reduction in GST rate for a long time now. Two-wheelers currently attract a peak GST of 28 per cent.
Guleria said the industry should focus on measures to get back the confidence of customers so that they start coming to showrooms without any fear.
Besides, efforts should be made to expand digital initiatives so that touchless experience can be offered to customers, he added.
He said the growth of two-wheeler industry is dependent on revival of other sectors and the industry should not be looked in isolation.
"It is all about the entire ecosystem. We are not in isolation here. It is all linked up. There are many industries where there is still no sign of revival. All of them directly or indirectly are linked to us. Unless the entire ecosystem, the whole economy comes back and there is revival, it is very difficult for our industry as well," Guleria said.
However, he is optimistic regarding the upcoming festive season.
Sales are improving month-on-month and even the demand in urban and semi-urban areas is picking up for the company, he said.
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