The 2-W segment is being considered for GST relief by the government, as per media reports. Currently, 2-W (along with rest of auto industry) are taxed at 28%. The industry has long called for at least a temporary rate reduction to 18% to mitigate rise in costs in the past few quarters (due to introduction of safety features like ABS/CBS, implementation of BS-VI norms, increase in registration fees & road tax by some states). Such a cut is viewed as having the potential to improve sentiment and thereby spur demand. However, our interaction with leading 2-W companies suggests that for the cut to result in...