GST cut relief: Two-wheeler prices may decline by as much as ₹24,500

The GST Council recently cut tax rates on sub-350cc two-wheelers and three-wheelers from 28 per cent to 18 per cent, effective September 22, 2025

As many as four manufacturers of two-wheelers have said they will pass on the benefits of Goods and Services Tax (GST) rate cuts to consumers, spreading cheer before the festival season.

 

Bajaj Auto, Honda Motorcycle & Scooter India (HMSI), Royal Enfield of Eicher Motors, and TVS Motor Company made the announcement after the GST Council earlier this month cut rates on sub-350cc two-wheelers and three-wheelers from 28 per cent to 18 per cent, effective September 22.

 

The companies’ revised prices for motorcycles, scooters, and three-wheelers will mean ex-showroom savings of Rs 5,000 to Rs 24,500, depending on brand and model. Bajaj Auto will cut motorcycle prices by up to Rs 20,000 and that of three-wheelers by up to Rs 24,000. 

HMSI customers can expect price reductions of up to Rs 18,800 for scooters and motorcycles, including popular models Activa, Shine, Unicorn, and CB350. Royal Enfield said the price of its 350cc motorcycles, the backbone of its sales, will reduce by up to Rs 22,000.

 

TVS is expected to make price cuts of up to Rs 24,496 for Apache RTR 310 and Apache RR 310 bikes and NTorq scooter.

 

Industry executives said the cuts will make mobility more affordable and boost demand in urban and rural markets. “The government’s decision to reduce GST for most two-wheelers and three-wheelers is a bold step forward, which will unlock demand and set the industry on a firm growth path,” said Rakesh Sharma, executive director of Bajaj Auto.

 

The price cuts will coincide with the onset of the festival season, traditionally a strong period for automobile sales. Analysts said the tax cut could help demand recovery, particularly in the price sensitive entry- and mid-level segments in two-wheelers.

 

By passing on GST benefits fully, manufacturers are hoping to lift consumer sentiment, expand their customer base, and support the broader automotive value chain, from dealers and suppliers to local businesses.