The Indian government had reduced excise duty for two-wheeler manufacturers from the decided 12 percent down to 8 percent to boost the sluggish sales pattern seen in 2013. After introducing the revised rates in February 2014, manufacturers reported a steady increase in motorcycle sales which rose 4.89 percent over the previous year.
Now, however, the government has discontinued that subsidy January 1, 2015 onwards, leaving the manufacturers to work on new strategies to try and boost sales once again. The overall demand for two-wheelers may see a negative impact now, as customers might have to choose between waiting for a longer period to acquire their desired vehicle or simply opt for a cheaper option.
Azaman Chothia
Vishal Venugopal
