More than reducing Goods and Services Tax (GST) rates, there is a need to improve technology and products, said Rajiv Bajaj, MD, Bajaj Auto.
“I would urge that if any GST change linked either to the safety norms of April or the emission norms then consumers have an incentive to buy a ‘superior’ product which is better for safety and the environment and thus cost increase of those products is then more or less going to be offset by this sop," Bajaj said.
Currency was not a big factor that impacted two-wheeler sales because the makers do not import much and in fact, for those who export, a weaker rupee is a good thing, Bajaj said.
Bajaj Auto on Wednesday reported 18 percent increase in total sales in December at 3,46,199 units as against 2,92,547 units in the same month previous year.
Motorcycle sales grew 31 per cent to 2,98,855 units in December 2018 against 2,28,762 units in December 2017, the company said in a BSE filing.