Introduction
The Indian government has recently introduced a major GST reform (effective September 22, 2025), aimed at simplifying the tax structure and boosting consumer confidence. The council has merged multiple tax slabs into just three — 5%, 18%, and 40%.
For motorcycles, this reform has a big impact:
- Bikes up to 350cc now fall under the 18% GST slab (reduced from 28%).
- Bikes above 350cc are now taxed at a steep 40% GST (increased from 28% + cess).
This move makes commuter and mid-range motorcycles cheaper, while premium bikes have become significantly costlier.
Price Comparison – Before vs. After GST
Sub-350cc Motorcycles (Now Cheaper)
| Model | Old Price (Approx.) | New Price (After GST) | Savings |
|---|---|---|---|
| Hero Splendor Plus | ₹79,096 | ₹72,516 | ~₹6,580 |
| Honda Shine 125 | ₹84,493 | ₹77,457 | ~₹7,036 |
| Bajaj Pulsar 150 | ₹1,10,419 | ₹1,01,847 | ~₹8,572 |
| TVS Apache RTR 160 | ₹1,34,320 | ₹1,23,822 | ~₹10,498 |
| Yamaha FZ-S Fi | ₹1,35,190 | ₹1,24,743 | ~₹10,447 |
| TVS Raider 125 | ₹1,04,000 | ₹96,000 | ~₹8,000 |
| Royal Enfield Hunter 350 | ₹1,49,900 | ₹1,34,910 | ~₹14,900 |
| Royal Enfield Classic 350 | ₹1,93,000 | ₹1,73,700 | ~₹19,300 |
Above-350cc Motorcycles (Now Costlier)
| Model | Old Price (Approx.) | New Price (After GST) | Hike |
|---|---|---|---|
| Bajaj Pulsar NS400Z (~373cc) | ₹1.85 lakh | ₹2.05 lakh | +₹20,000 |
| KTM 390 Duke / Adventure X | ₹3.11 lakh | ₹3.35 lakh | +₹24,000 |
| Royal Enfield Himalayan 450 | ₹2.85–2.98 lakh | ₹3.05–3.18 lakh | +₹20,000 |
| Royal Enfield Interceptor 650 | ₹3.09–3.38 lakh | ₹3.30–3.62 lakh | +₹22,000 |
| Triumph & Harley (entry-level) | ₹2.3–2.5 lakh | ₹2.6–2.8 lakh | +₹25,000+ |
Impact on Riders
- Everyday Riders & Commuters
Big win! Most bikes under 350cc — which make up nearly 98% of the Indian two-wheeler market — are now more affordable. - Premium Bike Enthusiasts
Heavy blow! With a 40% GST rate, prices of 350cc+ motorcycles have gone up by ₹17,000 to ₹35,000, making ownership costlier.
Brand Reactions
- TVS Motor Company – Confirmed they will pass the full GST benefit to customers, making Apache, Raider, Jupiter, and Ntorq cheaper.
- Classic Legends (Jawa & Yezdi) – Expect their models to drop below ₹2 lakh, giving them a competitive festive season advantage.
- Royal Enfield, KTM, Triumph – Their mid- and high-capacity bikes face steep hikes. Some brands are lobbying for a uniform GST rate across motorcycles.
Conclusion
The GST 2.0 reform is a mixed bag for bikers in India:
- Winners: Commuters, students, and first-time buyers.
- Losers: Premium bike enthusiasts who will now have to spend significantly more.
As the festive season begins, the new pricing is expected to boost demand in the entry-level and mid-range market, while premium bike sales may slow down.
