The new GST 2.0 policy has gone into effect, bringing changes to the Indian automobile market. Automakers are adjusting prices to reflect the updated tax rates. Two-wheelers are especially affected by these modifications. Specifically, the sub-350cc motorcycle segment stands to gain the most from the recent tax changes.
The most significant price drops are occurring in the under-350cc category, where the GST rate has been reduced from 38% to 18%. This change will result in lower prices for common commuter motorcycles. Models like Hero Splendor, Honda Activa, Bajaj Pulsar, TVS Apache, and Royal Enfield Classic 350 will become more affordable, likely attracting new buyers and boosting sales, especially during the upcoming festive season. Specific price reductions are outlined here:
[Table of Discounts]
Motorcycles with engine capacities greater than 350cc now face a different tax structure under the GST policy, with a 40% GST rate. This affects the pricing of higher-end models in the 450cc to 650cc range. These are the expected reductions:
[Table of Discounts]