Government Reduces GST on Motorcycles — Big Relief for Buyers
The central government has revised the Goods and Services Tax (GST) on motorcycles and scooters with engine capacities below 350cc, lowering the rate from 28% to 18%. This policy change has prompted manufacturers to cut retail prices immediately. With Bike Prices Reduced in India, entry-level commuters and mid-segment riders stand to gain the most, while premium, high-cc models remain unaffected for now.
In a major boost for India’s two-wheeler industry, the Government of India has announced a reduction in Goods and Services Tax (GST) on motorcycles with engine capacities below 350cc. The GST rate has been slashed from 28% to 18%, bringing significant relief to both manufacturers and buyers.
This tax revision aims to make personal mobility more affordable and to revive the slowing two-wheeler market.
According to a report by Autocar India, this move will especially benefit the entry- and mid-segment motorcycle buyers.
Honda, TVS, Suzuki, and Hero Lead the Price Cuts
Soon after the GST cut, leading manufacturers announced price revisions across their product ranges.
🔹 Honda Motorcycles
Honda Motorcycle and Scooter India (HMSI) has confirmed a price drop of up to ₹18,800 across select models.
Popular bikes like the Honda Shine, SP 125, and CB350 series have become more affordable.
According to Autocar India, the revised prices are already effective across dealerships nationwide.
🔹 Suzuki Two-Wheelers
Suzuki Motorcycle India has also reduced prices by up to ₹11,520 across models like Gixxer, Access 125, and Burgman Street.
The company stated that this adjustment will make its premium scooters and commuter bikes more competitive.
(Bikewale Report)
🔹 TVS Motor Company
TVS Motor has implemented one of the largest cuts — ranging from ₹4,000 to ₹24,310, depending on the model.
From the commuter favorite TVS Raider to the performance-focused Apache RTR series, all have received price revisions.
(Autocar India Source)
🔹 Hero MotoCorp
Hero, India’s largest two-wheeler manufacturer, has reduced prices for its commuter bikes like Splendor, Passion, and Glamour by ₹4,500–₹9,000.
The company expects this change to drive sales in the festive season and rural markets.
Impact on the Two-Wheeler Market
The Indian two-wheeler segment has faced pressure over the past two years due to rising fuel costs, insurance rates, and regulatory changes.
This GST cut is expected to boost demand, especially in the commuter and mid-range segments (100cc–350cc).
Industry analysts predict that the affordable bike category could see a 10–15% increase in sales over the next quarter.
The decision also aligns with India’s broader plan to promote mass mobility solutions and Make in India manufacturing.
What About Premium Bikes (Above 350cc)?
It’s important to note that the GST reduction does not apply to motorcycles above 350cc, such as Royal Enfield 650 Twins, KTM 390, or BMW G310R.
These models will continue to attract 28% GST, meaning their prices remain unchanged for now.
However, market experts believe that brands may still introduce promotional discounts during the festive season to attract buyers.
Consumer Reaction: “Perfect Timing Before Festive Season”
The timing of the price cut is seen as perfect, as festive months (October–November) are typically strong for automobile sales.
Dealers across cities like Delhi, Mumbai, and Lucknow report increased footfall and inquiries since the announcement.
Many first-time buyers who had postponed their purchases due to high prices are now revisiting showrooms.
“People are excited — even a ₹5,000 drop matters in the commuter segment,” said a Delhi-based dealer.
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Conclusion
The reduction of GST on two-wheelers below 350cc has brought much-needed relief to Indian consumers. With brands like Honda, TVS, Hero, and Suzuki cutting prices by thousands of rupees, owning a bike in 2025 has never been more affordable.
If you’re planning to buy a new motorcycle, now is the best time to visit your nearest dealership and grab the festive discounts.
