Hero's Munjal proposes GST rate cut for two-wheelers, Bajaj disposes

Munjal's remarks come against the backdrop of slowing two-wheeler sales of Hero and others in the domestic market after years of double digit growth

The heads of India’s two biggest two-wheeler makers have divergent views on the goods and services tax (GST) rate. 

Pawan Munjal, chairman and managing director of Hero MotoCorp, is rooting for an urgent cut in the GST on two-wheelers from 28 per cent to 18 per cent, saying these vehicles provide basic mobility to the masses. Rajiv Bajaj, managing director and CEO of Bajaj Auto, however, disagrees. “The industry shouldn’t expect anything from a government that has to bail out IL&FS (Infrastructure Leasing & Financial Services) and Air India. It should focus on products and not rely on government sops,”