Budget 2018 Effects on Bikes – Hits and Misses!


The Union Budget 2018 was keenly followed by all the two-wheeler manufacturers and buyers in the country. While the introduction of GST was largely welcomed by the consumers due to the drop in prices of bikes, the Budget 2018 doesn’t bring about any change for either the buyers or the manufacturers. The auto companies had huge hopes from the FM, especially because this is the last budget by the current government ahead of elections next year. However, it doesn’t look like the two-wheeler industry would really benefit from the new budget. Here, in this post, we have put together some information on the Budget 2018 effects on bikes in India.

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ALSO SEE- Budget 2018 Effects on Cars – Hits and Misses

Budget 2018 Effects on Bikes – Hits

  • Currently, the automotive sector is under a pressure to fast-track the launch of BS6-compliant vehicles. The latest union budget just might ease things a bit for bikemakers facing huge expenditures on R&D. While no specific mention of the automobile sector was made in his speech, Mr Jaitley did talk about reduction in the corporate tax to 25% for companies with a turnover of 250 crores and above. This is something that will surely please almost all automakers in India. However, it remains to be seen if a part of this benefit will be passed on to the buyers.

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  • Another positive in the new budget is an excise duty cut of Rs 2 /litre on unbranded petrol. Other than this, as can be seen, budget 2018 effects on bikes are largely minimal.

Budget 2018 Effects on Bikes – Misses

  • While no direct mention of the auto sector was made, the FM did talk about increasing the cess on the imported good. Hence, don’t be surprised to see imported bikes getting costlier.
  • Automakers who hoped for incentives in Research and Development will be disappointed. The companies were hopeful of benefitting from a revision of weighted deduction on R&D to 200% to enhance innovation and research activities ahead of the implementation of BSVI emission norms.
  • Also, the request by companies for more fund allocation to the FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) has not been addressed in the budget 2018 speech.
  • Also, there has been no announcement on boosting EV infrastructure like the introduction of more charging stations.
  • There was also no mention of any sort of reduction/relaxation in taxes on electric vehicles. The industry was hoping for a strong incentive push to the EV sector. However, there has been no reduction in GST on electric vehicles and their components.

So, what’s your take on the Budget 2018 effects on bikes? Share your views with us by penning them down in the comments section below. Also, stay tuned for latest news on cars and bikes in India.

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  • Last modified: February 2, 2018