The time has come for two-wheeler customers in India to rejoice. It’s not every day that we celebrate the implementation of new tax slabs. However, these slabs, branded as “GST 2.0”, have arrived with a lot of innovations, and have come into effect since 4th September 2025.
This new change comes with a promise of lowering taxes on motorcycles, meaning that the cost of on-road bikes for customers will decrease significantly for the most popular bikes. However, we have to ask ourselves the all-important questions, how significant will the cost reduce to and how urgent will the demand rise for the bikes? And mostly, do customers really need to demand for bikes this urgently, especially for those on the wish list? The New Tax – Price and Variants and Launch Details have to do with the new desired simplicity under the newly formulated tax slabs.
It’s even more aligned to the vision of making two wheelers more accessible for the masses, and instantly, uplifting the automobile sector. Below is the enhanced template that illustrates the newly envisioned tax system, and compares it to its predecessor.
Here’s a simple breakdown of the new tax structure compared to the old one.
| Engine Capacity | Old GST Rate (Approx. with Cess) | New GST 2.0 Rate |
| Up to 350cc | 28% | 18% |
| Above 350cc | 31% | 28% |
As you can see, the biggest benefit is for mass-market bikes up to 350cc, which now fall into the lower 18% slab. This is a massive 10% tax reduction that will directly impact the final on-road price.
Engine Performance and Mileage (The “Kitna Fayda?” Section)
So, the big question is, how much will you actually save? The savings depend on the price and engine capacity of the bike.
The biggest winners are the commuter bikes and the popular 200-350cc motorcycles. For bikes above 350cc, the benefit is smaller but still significant.
The ‘Why’ is straightforward. A lower GST rate means a lower ex-showroom price. This, in turn, reduces other costs like road tax and insurance, which are calculated on the ex-showroom price, leading to a substantial drop in the final on-road price you pay.
Design Exterior and Features (The Wow Factor): Real-World Savings
Let’s look at some popular models and their estimated new on-road prices in Ambernath, Maharashtra.
Exterior & Interior (Impact on Price): While the bikes themselves remain the same, their price tags will see a beautiful change. These are estimated savings, and the final prices will be announced by manufacturers soon.
Key Features List (Price Drop Examples):
- Hero Splendor Plus: Old Price: ~₹95,000 -> New Estimated Price: ~₹87,000 (Saving of ₹8,000!)
- Honda Activa: Old Price: ~₹1,05,000 -> New Estimated Price: ~₹96,000 (Saving of ₹9,000!)
- Royal Enfield Classic 350: Old Price: ~₹2,50,000 -> New Estimated Price: ~₹2,28,000 (Saving of ₹22,000!)
- KTM 390 Duke: Old Price: ~₹3,70,000 -> New Estimated Price: ~₹3,58,000 (Saving of ₹12,000!)
- Kawasaki Ninja 650: Old Price: ~₹8,50,000 -> New Estimated Price: ~₹8,25,000 (Saving of ₹25,000!)
Direct Rival Comparison (The Head-to-Head): Segment-wise Impact
The price cuts will affect every segment differently, making some bikes even better value for money.
| Feature / Segment | Commuter (Splendor) | Classic (RE 350) | Performance (KTM 390 Duke) |
| Old On-Road Price (Est.) | ₹95,000 | ₹2,50,000 | ₹3,70,000 |
| New On-Road Price (Est.) | ₹87,000 | ₹2,28,000 | ₹3,58,000 |
| Engine Capacity | ~100cc | 349cc | 399cc |
| New GST Rate | 18% | 18% | 28% |
| Estimated Saving | ~ ₹8,000 | ~ ₹22,000 | ~ ₹12,000 |
The data clearly shows that the biggest beneficiaries in percentage terms are the popular bikes under 350cc. A massive ₹22,000 saving on a Royal Enfield Classic 350 makes it an incredibly attractive deal right now.
Practicality & Safety: Making Safer Bikes More Affordable
One of the best outcomes of this new policy is that it makes safer motorcycles more accessible to the public.
A bike equipped with dual-channel ABS, which was previously a bit of a stretch for some buyers, will now become more affordable. This move by the government will not only boost sales but could also play a role in improving road safety by encouraging the adoption of bikes with better safety features.
Expert Buyer Advice (Who Should & Shouldn’t Buy It?)
You SHOULD Buy This If
- …you were planning to buy a new motorcycle in the next few months. This is the perfect time to get a great deal.
- …the price reduction now makes a bike you previously considered too expensive fall within your budget.
- …you want to take advantage of the festive season offers that will soon be combined with these new, lower prices.
You should AVOID This If
- …you need to buy a bike today. It might take a week or two for dealers to update their systems and for official new price lists to be announced.
- …you are expecting a massive discount on a very high-end CBU import; the savings, while present, will be a smaller percentage of the total cost.
- …you are hoping for further discounts. This is a government policy change, so these are the final prices; dealer-level offers will be extra.
Frequently Asked Questions
Is the GST 2.0 price cut applicable on all bikes in India?
Yes, the new GST rates are applicable to all new two-wheelers sold in India. The percentage of the price cut will vary based on the engine capacity and the ex-showroom price.
When will I see the new prices reflected in showrooms?
While the policy is effective immediately, it may take a few days to a week for manufacturers to release official new price lists and for dealerships to update their systems. It’s best to call and confirm with your local dealer.
Will this GST change affect the price of second-hand bikes?
Indirectly, yes. A reduction in new bike prices might also lead to a slight correction in the prices of used bikes, making them even more affordable.
Should I wait for Diwali or buy now?
The GST price cut is here to stay. You can wait for Diwali to see if dealers add their own festive offers on top of the new, lower prices, which could result in the absolute best deal.
Final Verdict
BUY: For the Indian consumer, the GST 2.0 revision is a massive win, making motorcycles more affordable across the board and presenting the best buying opportunity in years.
