Yezdi, Jawa set for revival: Founders hail GST cuts for reversing 90s fade

New Delhi: The GST reforms will ensure that iconic motorcycle brands Yezdi and Jawa "shine like nobody else" in their comeback trail after fading away from the market in the mid-90s due to a policy change, according to co-founders of Classic Legends, which owns the two marques.

The bikes of the two brands will cost less than Rs 2 lakh once the new rate of the revised goods and services tax (GST) structure of 18 per cent, down from 28 per cent on two-wheelers up to 350 cc, kicks in as the company will pass on the full benefits to customers, Classic Legends MD & Co-Founder Anupam Thareja and Co-Founder Boman Irani told PTI in a joint interview.

At present, different models of the two brands are priced between Rs 1.72 lakh and Rs 2.35 lakh.

On the other hand, the increase to a 40 per cent special rate on motorcycles above 350 cc from 31 per cent, including cess, will hurt the company's other motorcycle brand BSA but they appreciated the government's move to "affect positively the pockets of the common man" and the fundamental of 'progressive taxation' -- people who can pay more paying more.

"As an Indian, I am happy and I'm humbly accepting that even though I lose out on 650 cc, you (the government) gave enough for 350 cc for me," Thareja said when asked about the GST rate changes on two-wheelers.

Earlier, Jawa and Yezdi were "playing in the 1.5-2 million (units) market size segment" in terms of price, he said, adding, "Suddenly we are all below Rs 2 lakh... We will have Jawas and Yezdis available below Rs 2 lakh." He asserted that the 350 cc segment will be one of the fastest expanding segments in the Indian motorcycle market after the GST cut.

In a lighter vein referring to the company's Yezdi Roadster, which was launched earlier last month, Thareja said, "On September 3, our honourable finance minister relaunched our Yezdi Roadster because they took the price down from Rs 2.09 lakh to Rs 1.9 lakh. So it has been launched twice."

Reflecting on how the GST reform has positively affected Jawa and Yezdi brands this time, he said in 1995 when the regulation of transition from two stroke and four stroke engines came for combating pollution, in 1996 their manufacturing stopped.

"The 1995 regulation made sure that Yezdi and Jawa fade away, and this 2025 regulation has ensured that we will shine like nobody else. Now it is luck. It is serendipity that the two main engine platforms -- 300cc, and 349 cc -- both of them fall under the category and get the benefit (of GST reduction)," Thareja said.

Giving a perspective of how successful Yezdi and Jawa were then, Irani said, "At our peak we did about 36,000 motorcycles in a year..." On the company's other brand BSA, Thareja said, "We launched it in India in 650 cc (segment). We really invested a tremendous amount of money in technology to make the best single cylinder engine in the world probably and now suddenly that becomes more expensive and very discretionary."

He, however, said, "While I get hurt and I feel bad, I also feel very proud as an Indian that yes it is okay. I am a part of that progressive taxation system -- that people who can pay more, should pay more. That money should be used by the government as a welfare state for the people to develop the nation and to help people who are at a level where they need the help."

Thareja admitted that the BSA bikes, which are currently priced at Rs 3.09 lakh and Rs 3.45 lakh, could address "the purist or the elitist" riders who would not mind paying the price for the brand.

On the overall GST reforms, Irani said, "The way they (government) rationalised GST is actually to affect positively the pockets of the common man... Their focus is quite clear that they want to definitely make the common man, or the man who needs the support, get the support at this point of time." Considering the impact of geopolitics playing out worldwide, Irani said the government has moved decisively towards making the feel good factor come back to the people's minds.

Expressing similar views, Thareja said, "It (GST reforms) is not optical. It is actually a significant cut, not only in rationalisation, but also in process."

He also said the timing of the announcement, ahead of the festival season will play a key role in accelerating demand, adding, "because of little bit of a slowdown, very incessant rains and this confusion (in the run up to the GST rationalisation) there will be a pent up demand also".

Asked if the company is ready to meet the expected increase in demand, Thareja said, "We are doubling our capacities. We are really ramping up... because the Yezdi Roadster became such a hit that we were anyway, increasing capacity. Now that is coming in very handy."