By Admin 
The tremendous craze of the bike is seen in the youth. As soon as the festive season arrives, the demand of the bike increases further. During this time, companies earn huge profits. But do you know how much money does a company earn by selling a bike?
Bike business of bikes in India
The market of two -wheelers in India is growing rapidly. Bike making companies do business of billions of rupees every year by selling millions of bikes. But do you know how much profit does the company really earn by selling a bike and what will affect their earnings due to recent GST rates? Let’s know
India’s two -wheeler market leads the world
Let us know that the stake in India’s GDP is 6 to 7.1 percent. Whereas this sector contributes 49 percent to manufacturing. In such a situation, the economic activities of the country are being strengthened by the sale of vehicles. India’s two -wheeler market is the largest in the world. According to data from the Society of Indian Automobile Manufacturers (SIAM), 19.6 million bikes sold in FY 2024-25, which is 9.1% more than the previous year. Companies like Hero MotoCorp, Bajaj Auto, TVS and Honda are the backbone of this market.
How much do companies benefit?
According to SIAM, the vehicles sold in the showroom get a profit of 3 to 9 per cent, while the government has reduced GST from 28 per cent to 18 per cent on two -wheelers with capacity less than 350 cc. The bike market in India mainly rests on models with a capacity less than 350cc, which is about 98 percent of the total sales. For example, bikes like Hero’s Splendor or Bajaj’s Pulsar are between 80,000 and Rs 1.5 lakh on an average. But the company’s earnings are not only from the sale price, but from the production cost, input tax credit (ITC) and margin.
Benefits or disadvantage after GST deduction?
On one hand, sales will increase with low GST. Experts estimate that two-wheeler sales can rise 15-20 percent in the festive season. Companies like Hero and Bajaj, who sell more than 80 percent commutar bikes, will increase the total profits due to increasing volume. Low GST will reduce the impact on production costs, because auto parts will now be charged 18 percent GST. This will make the supply chain cheaper and the benefit of ITC will increase. As a result, profits per bike may increase by Rs 1,000-2,000. Although big bike companies such as Royal Enfield can be damaged, their 350cc+ model will increase the price by 40% GST, which can reduce sales.
Also read: Why the film is released on Friday itself, why was it not chosen for it on Saturday and Sunday?