Amidst the notable toll of two-wheeler accidents on lives across India’s roads, manufacturers of two-wheelers are urging for a reduction in the Goods and Services Tax (GST). The appeal is for a decrease from the existing 18 percent to a minimum of 12 percent, emphasizing the urgency of this measure in addressing the significant loss of lives due to such accidents.

“We have already petitioned the government that, considering helmets as life-saving devices, the GST on them should be reduced to 12 percent from the current 18 percent. A decrease in GST would enable customers to access high-quality helmets at a more affordable price,” stated the President of the Two-Wheeler Helmet Manufacturers Association.

As per the latest data from the Ministry of Road Transport and Highways (MoRTH), two-wheelers contribute to 42 percent of accidents and 41 percent of fatalities in road accidents. In 2022, MoRTH reported a total of 151,997 accidents, with 63,115 involving two-wheelers—an increase of 20 percent from 2021. Similarly, fatalities from two-wheeler accidents rose by 11 percent between 2021 and 2022, reaching a total of 61,038, with 25,228 attributed to two-wheeler incidents.

“Reports indicate that only 30 percent of riders in India wear helmets. While helmets are not currently mandatory in India, gradual enforcement of this requirement by the government is anticipated,” he added. Under the motorcycle act, every company is required to provide a helmet with each motorcycle to ensure rider safety. Some states have mandated the supply of two helmets.

“The helmet industry, especially the branded segment, is undergoing substantial growth. Steelbird is expected to grow by 30 percent, driven by the launch of highly innovative products. The market is leaning towards branded products, and an increasing number of bikes are being introduced,” he continued. Following a decline during the Covid-19 pandemic, helmet sales are rebounding, rising from approximately 13.9 million units in 2020 to 20.5 million in 2021 and 22.05 million in 2022, compared to 21 million in 2018.

Kapur outlined that the total capacity in the branded segment is approximately 30 million, with the unbranded segment likely at a similar level. “We are investing Rs 105 crore in our Baddi plant. Our production capacity will soon increase to 15,000 helmets per day from the current 13,000,” he stated regarding Steelbird’s expansion plans.

source: Helmet makers demand cut in GST as 2W accidents claim goodslives in India