Triumph's view on the upcoming Union Budget - Expectations Of the Two Wheeler Industry

Indian Budget 2016 is going to be announced on 29th Feb and it will affect all the goods and services sold in the country including the automobiles. All the automakers have different expectations from the new budget which are based on the segment and range of their offerings. If we talk about the two wheelers, expectations of the manufacturers who offer products with over 800cc engine capacity are expecting much more than those who are offering products with lower engine capacity. Here we will be talking about Triumph Motorcycle India, which is a renowned manufacturer of two-wheeled machines offering motorcycles with engine capacities above 800cc only in the country.  

 Like every other auto manufacturer Triumph also has some expectations from the new budget? To get the answer, our team asked Triumph and here is what they had to say. 

An reduction in the Excise duty is a long standing demand of the Indian automakers it was there even during the previous budget and it is valid to a great extent. The reason being, no Indian manufacturer, as of now is locally manufacturing motorcycles in 800cc and above segments and most of these bikes are imported as CBU or CKD units. So, reducing the import duties for motorcycles that are 800cc and above will help the manufacturers in tiding over the recent slump in the market and will encourage buyers to opt for these high capacity bikes as they can then be priced competitively.

According to SIAM, the reduction in the excise duty and implementation of GST are top priorities for the automobile industry. The successful implementation of GST this year will surely help in development of India into a big market for automobiles and will ensure seamless movement of goods and services along with an impressive increment in GDP. Hence, speeding up the implementation of GST could be the main factors affecting the automotive industry that requires the attention of our government. 

Reduction in corporate tax rates is another aspect that could indirectly help the manufacturers in infrastructure development. Therefore, the company that is importing CBU motorcycles right now, can set up a facility in the country to assemble CKD units domestically. It will result in the price reduction of products and waiting period as well.

So, we believe that a successful implementation of GST and reduction in excise duty along with reduction in corporate tax rates could help the British motorcycle maker- Triumph to provide its products with comparatively lesser price tags. We believe that every big bike manufacturer will agree with these expectations from the upcoming Budget.