Shares of TVS Motor Company rose 4.84% on Monday, August 18, closing at ₹3,166.60 after reports indicated that the government is preparing to rationalise the Goods and Services Tax (GST) structure ahead of Diwali. The move could reduce the tax on two-wheelers to 18% from the current 28–31% for larger engine models.
The proposed “GST 2.0” framework seeks to simplify slabs by eliminating the 12% and 28% rates, leaving just two categories—5% for essentials and 18% for standard goods. If implemented, this could make two-wheelers more affordable during the festive season, a development long demanded by industry stakeholders.
The Society of Indian Automobile Manufacturers (SIAM) has repeatedly urged the government to lower GST on two-wheelers to 18%, while also advocating for further concessions for CNG and flex-fuel variants. Automakers including TVS Motor have argued that two-wheelers are essential for everyday mobility and should not be treated as luxury products.
Economists believe the proposed cut would boost consumer spending power, improve affordability for middle-income and rural households, and help revive demand in the two-wheeler market, which has seen a slowdown in recent quarters. The positive outlook drove TVS Motor’s stock to fresh highs, lifting its market capitalisation to ₹1.50 lakh crore.
