Morgan Stanley anticipates a 10% reduction in GST rates for motorcycles under 350CC, potentially resulting in an approximate 8% price decrease that could generate substantial demand tailwinds for Eicher Motors. The investment bank identified replacement demand as the key driver in the two-wheeler market, suggesting premium motorcycle manufacturers like Eicher could see the most significant benefits from the tax changes. Morgan Stanley noted that while the sub-350CC segment would benefit, Eicher's motorcycles above 350CC would face higher GST rates, which could potentially limit margin expansion due to a weaker product mix. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.