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New GST Rates 2025: Full List of Bikes, Scooters & Motorcycles That Get Cheaper After Tax Cut
GST 2.0 Unveiled – A Game Changer for Two-Wheeler Buyers
On September 22, 2025, India introduced the much-anticipated GST 2.0, a sweeping reform designed to simplify the Goods and Services Tax (GST) structure. This overhaul consolidates the previous four-tier system into two primary slabs: 5% for essential items and 18% for most other goods and services. Notably, two-wheelers under 350cc, which constitute approximately 98% of India’s two-wheeler market, have seen their GST rate reduced from 28% to 18%. This significant reduction translates to price cuts ranging from ₹5,600 to ₹18,800, depending on the model and manufacturer.
This GST revision aims to make commuting more affordable for the masses, boost two-wheeler sales, and stimulate economic activity, especially ahead of the festive season.
Impact on Popular Two-Wheeler Models
1. Hero MotoCorp
| Model | Old Price (₹) | New Price (₹) | Price Cut (₹) |
|---|---|---|---|
| Splendor Plus | 75,000 | 70,000 | 5,000 |
| HF Deluxe | 65,000 | 60,000 | 5,000 |
| Xtreme 160R | 1,20,000 | 1,10,000 | 10,000 |
Hero MotoCorp has quickly passed on the GST benefits to customers, making popular models more affordable, especially the Splendor Plus and Xtreme 160R, which are among the highest-selling bikes in India.
2. Bajaj Auto
| Model | Old Price (₹) | New Price (₹) | Price Cut (₹) |
|---|---|---|---|
| Platina 110 | 71,000 | 66,000 | 5,000 |
| Pulsar 125 | 85,000 | 80,000 | 5,000 |
| Pulsar 150 | 1,13,000 | 1,03,000 | 10,000 |
Bajaj Auto models, especially the Pulsar series, are widely popular among urban youth. The GST reduction enhances affordability and is expected to drive higher sales this festive season.
3. TVS Motor Company
| Model | Old Price (₹) | New Price (₹) | Price Cut (₹) |
|---|---|---|---|
| Jupiter 110 | 80,000 | 75,000 | 5,000 |
| Apache RTR 160 | 1,05,000 | 95,000 | 10,000 |
| Apache RTR 200 | 1,25,000 | 1,15,000 | 10,000 |
TVS Motor Company has strategically reduced prices on commuter scooters like Jupiter and performance bikes like Apache RTR series to ensure competitive advantage in the mid-range segment.
4. Suzuki Motorcycle India
| Model | Old Price (₹) | New Price (₹) | Price Cut (₹) |
|---|---|---|---|
| Access 125 | 86,000 | 77,000 | 9,000 |
| Avenis 125 | 91,000 | 83,000 | 8,000 |
| Burgman Street 125 | 96,000 | 88,000 | 8,000 |
Suzuki’s scooters are now significantly cheaper, making them accessible to younger riders and first-time buyers. Models like Access 125 are particularly popular in urban commuting.
5. Honda Motorcycle & Scooter India
| Model | Old Price (₹) | New Price (₹) | Price Cut (₹) |
|---|---|---|---|
| CB350 | 1,90,000 | 1,70,000 | 20,000 |
| CB350RS | 1,80,000 | 1,60,000 | 20,000 |
| CB300F | 2,50,000 | 2,30,000 | 20,000 |
Honda has offered substantial price cuts on premium models, particularly the CB350 series, making mid-range motorcycles more attainable for enthusiasts.
6. Royal Enfield
| Model | Old Price (₹) | New Price (₹) | Price Cut (₹) |
|---|---|---|---|
| Classic 350 | 2,00,000 | 1,85,000 | 15,000 |
| Meteor 350 | 2,15,000 | 2,00,000 | 15,000 |
| Bullet 350 | 1,80,000 | 1,65,000 | 15,000 |
Royal Enfield, iconic for its long-range touring motorcycles, now becomes slightly more affordable, attracting both long-time riders and new enthusiasts.
7. Yamaha Motor India
| Model | Old Price (₹) | New Price (₹) | Price Cut (₹) |
|---|---|---|---|
| FZ-FI | 1,25,000 | 1,15,000 | 10,000 |
| R15 V4 | 1,60,000 | 1,50,000 | 10,000 |
| Fascino 125 | 78,000 | 70,000 | 8,000 |
Yamaha’s sporty and commuter-friendly models like FZ-FI and R15 V4 see reductions that improve affordability without compromising on performance appeal.
How the GST Rate Cut Affects Consumers
1. Economic Relief for Commuters
Two-wheeler buyers, especially in tier-2 and tier-3 cities, gain direct financial relief. Affordable bikes and scooters mean savings on upfront investment, insurance, and loan EMIs for first-time buyers.
2. Encouragement for Upgrades
Existing vehicle owners may consider upgrading to higher-capacity bikes now that price differences are reduced due to the GST cut.
3. Positive Impact on Urban Mobility
Lower vehicle prices may encourage more people to switch from public transport to private commuting options, easing urban transit congestion in the short term.
4. Boost to Festive Season Sales
Manufacturers expect a significant surge in showroom traffic as buyers plan to purchase before Diwali and other festivals, aiming to avail maximum benefits from the tax cut.
Comparing Old vs New GST on Two-Wheelers
| Engine Capacity | Old GST Rate | New GST Rate | Approximate Price Cut |
|---|---|---|---|
| Up to 125cc | 28% | 18% | ₹5,000 – ₹9,000 |
| 125cc – 200cc | 28% | 18% | ₹8,000 – ₹12,000 |
| 200cc – 350cc | 28% | 18% | ₹12,000 – ₹20,000 |
The table clearly illustrates how the GST rate reduction across engine categories translates to direct cost benefits for the buyer.
Manufacturer Strategies After GST Cut
- Price Pass-On: Most manufacturers have immediately passed on the benefit to buyers to maintain competitiveness.
- Promotional Campaigns: Enhanced marketing around GST cuts, especially targeting festival sales.
- Inventory Clearance: Dealers are using the GST cut as an opportunity to clear older inventory with attractive discounts.
- Financing & EMI Offers: Some companies are combining price reductions with better EMI schemes for first-time buyers.
Regional Implications
- Urban Centers: Metro cities like Delhi, Mumbai, Bangalore are likely to see a surge in showroom visits.
- Tier-2 & Tier-3 Cities: These areas benefit more from reduced prices due to higher sensitivity to upfront costs.
- Rural Areas: Commuters using two-wheelers for work and travel gain significantly from reduced GST.
Challenges and Considerations
- Dealer Pricing: Prices may vary slightly across dealerships due to additional charges or discounts.
- Insurance & Road Tax: GST reduction affects vehicle price but insurance premiums may vary.
- Availability: Popular models may face temporary stock shortages due to increased demand.
- Financing Rates: Loan interest rates are independent of GST cuts, though total EMI amounts reduce with lower vehicle prices.
Conclusion
The GST 2.0 rate cut for two-wheelers under 350cc is a major development for Indian consumers. It makes bikes and scooters more affordable, boosts sales for manufacturers, and stimulates the overall economy. With savings ranging from ₹5,000 to over ₹20,000 on popular models, now is an ideal time for first-time buyers and existing owners considering upgrades.
Prospective buyers are advised to check with local dealerships for accurate pricing, stock availability, and any additional promotional offers available during the festive season.
Disclaimer
The information provided in this article is based on the latest available data as of September 22, 2025. Prices, models, and GST rates are subject to change. Readers are advised to consult official dealerships and manufacturer announcements for the most accurate and current details.
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