Stock in focus - Hero Moto Corp

Additionally, the government has suggested increasing the GST from 28% to 40% on bigger passenger vehicles (engines above 1,200cc for gasoline, over 1,500cc for diesel, and length exceeding 4,000mm), racing cars, and motorbikes over 350cc. Lal emphasized that imposing a higher tax on high-capacity motorcycles would "cripple investment and scale" and give overseas rivals an advantage. Pawan Munjal, the chairman of Hero MotoCorp, stated that a reduction in GST will offer "much-needed relief to first-time buyers." For comparison, over 95% of Hero MotoCorp's volumes and 86% of Royal Enfield's sales are of bikes with a displacement of less than 350cc. Even though the industry as a whole has been gradually shifting towards premiumization, TVS Motor and Bajaj Auto both see very little sales from premium vehicles.