- Two-wheeler sales could grow this year
- Tax exemption for income up to Rs 5 lakhs
The government of India has just announced its interim 2019 budget. The latest budget exempts income up to Rs 5 lakhs from tax, and that could push the two-wheeler sales in the country.
Due to the income exemption, Indian consumers will have more disposable income. As a result, the spending is bound to increase and the two-wheeler industry will benefit the most. So companies like Hero MotoCorp, Bajaj and Honda are likely to benefit the most, as they have bikes and scooters in the entry-level segment.
2018 was a decent year for the Indian two-wheeler industry. In fact, the last few months of last year wasn’t great. The high insurance cost coupled with low demand in the festive season hampered the overall sales projection.