Get ready, India’s two-wheeler market just got a spicy new makeover! Thanks to some genius government reforms, the GST on motorcycles and scooters under 350cc has dropped from a hefty 28% to a much sweeter 18%. This isn’t just a tweak; it’s a full-blown revolution on two wheels, making our favorite rides more affordable than a fancy coffee.
The GST Jamboree: Manufacturers Join the Party!
Major players like Royal Enfield, Hero MotoCorp, Honda, and Bajaj wasted no time passing these savings on to you, the consumer. It’s like they were all waiting for the starting gun to slash prices.
- Royal Enfield: The king of the mid-size segment made the biggest splash, with price cuts of up to ₹22,000 on its beloved 350cc lineup. Models like the Classic 350, Hunter 350, and Meteor 350 are now more accessible, attracting new riders to the world of “pure motorcycling.” This strategic move strengthens their market dominance and taps into a younger, budget-conscious audience.
- Hero MotoCorp: India’s largest two-wheeler manufacturer, with a portfolio entirely under the 350cc bracket, saw price reductions of up to ₹15,743. Commuter icons like the Splendor+ and scooters like the Xoom are now even more wallet-friendly. This move reinforces their position as the go-to brand for mass mobility, ensuring they remain the market leader.
- Honda: The Japanese giant also got in on the action, with price cuts of up to ₹18,887 on popular models like the Activa and Shine 125. By making its reliable and fuel-efficient scooters and bikes cheaper, Honda aims to boost sales in the high-volume commuter segment, where it faces fierce competition.
- Bajaj Auto: The “world’s most valuable two- and three-wheeler manufacturer” reduced prices by up to ₹20,000 on its motorcycles, including the popular Pulsar and Avenger series. For Bajaj, this is a strategic play to maintain its competitive edge and lift consumer sentiment right before the festive season.
Marketing Masters and a Competitive Rumble
This GST price cut is more than just a fiscal reform; it is a marketing goldmine. Companies are framing it as a gift to consumers, an act of generosity just in time for the festive season. The messaging is clear: “Your dream bike is now within reach!” This has created a competitive frenzy, with each brand trying to outdo the other in offering the best deals and benefits. The real winners here are the consumers, who can now pick and choose from a wider range of affordable options. The market is buzzing with excitement, and analysts predict a significant surge in sales.
The Good, the Bad, and the Biker’s Take
Likes:
- Pocket-Friendly Perfection: The most obvious benefit is the lower price, making two-wheelers more affordable for millions of Indians.
- Festive Cheers: The timing is impeccable, giving a strong push to demand ahead of the festive season.
- Boost for Business: The move supports small businesses and daily commuters who rely on two-wheelers for their livelihoods.
Dislikes:
- Bigger Bikes Get Hit: Motorcycles with an engine capacity above 350cc, like some Royal Enfield and KTM models, now face a higher tax rate of 40%, which will make them more expensive.
- Confusing Consumers? The price changes across various models can be a bit confusing for customers, who have to cross-check new prices at dealerships.
Credible Sources
- Hero MotoCorp to reduce prices by up to ₹15,743 to pass on GST rate cut benefits
- Bajaj Auto to pass on GST rate reduction to customers across motorcycle, three-wheeler range
- Royal Enfield Classic, Hunter 350 and more get cheaper as co slashes prices up to Rs 22,000 after GST 2.0
- Honda Motorcycle and Scooter announces price cuts : Activa, Dio, Shine to see reduction up to Rs 18,887 after GST rejig
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