The Indian two-wheeler industry is witnessing a historic transformation with the implementation of GST 2.0, effective from September 22, 2025. The landmark reform has brought unprecedented relief to millions of commuters and bike enthusiasts across India, with major manufacturers Hero MotoCorp, Honda, TVS, and Suzuki announcing significant price reductions ranging from ₹3,500 to over ₹25,000 across their model portfolios.
Understanding the GST Restructuring Framework
The 56th GST Council meeting introduced a comprehensive overhaul of two-wheeler taxation that will reshape the industry landscape:youtube
- Two-wheelers ≤350cc: GST reduced from 28% to 18% (10% reduction)
- Two-wheelers >350cc: GST increased from 28% to 40% (12% increase)
- Three-wheelers: All categories moved to 18% GST bracket
- Electric vehicles: Continue at 5% GST (unchanged)
This restructuring benefits approximately 98% of the Indian two-wheeler market, as nearly all popular models fall under the 350cc category.youtube
Hero MotoCorp: India’s Largest Two-Wheeler Manufacturer
Hero MotoCorp has announced comprehensive price reductions across its entire portfolio, with savings reaching up to ₹15,743 on premium models.
Commuter Motorcycles
Hero Splendor Plus
- Price reduction: ₹6,820
- Current price: ₹79,096 (expected post-GST)
Hero HF Deluxe
- Price reduction: Up to ₹5,805
- Positioning: Enhanced affordability in entry-level segment
Premium Motorcycles
Hero Karizma 210
- Maximum savings: ₹15,743 (highest benefit across Hero range)
- Impact: Makes the iconic model substantially more accessible
Hero Xtreme 125R
- Price reduction: Up to ₹8,010
Hero Xtreme 160R 4V
- Price reduction: Up to ₹10,985
- Segment impact: Enhanced competitiveness in premium commuter category
Scooter Range
Hero Destini 125
- Price reduction: Up to ₹7,197
Hero Pleasure+
- Price reduction: Up to ₹6,417
Honda Two-Wheeler Portfolio Transformation
Honda has committed to passing on GST benefits across its popular scooter and motorcycle range.
Scooter Segment Leadership
Honda Activa 125
- Current price: ₹81,000
- New price: ₹74,250 (expected)
- Savings: ₹6,750
Honda Dio 125
- Price reduction: ₹6,222
- New price: ₹65,778 (expected)
Motorcycle Range
Honda Shine 125
- New price: ₹84,493 (expected post-GST)
- Engine: 123.94cc
- Segment positioning: Enhanced value in premium commuter category
TVS Motor Company: Comprehensive Range Benefits
TVS Motor Company has announced it will pass on full GST benefits to customers, with price reductions reaching up to ₹25,000 across various models.
Apache Performance Series
TVS Apache RTR 160 4V
- Current price range: ₹1,25,670 – ₹1,47,990
- New price range: ₹1,15,997 – ₹1,36,302
- Maximum savings: Up to ₹11,688
TVS Apache RTR 200 4V
- Price reduction: Up to ₹12,490
- Variants affected: All including USD and TFT variants
TVS Apache RTR 310
- Maximum savings: Up to ₹24,496 on flagship models
- Current price range: ₹2,39,990 – ₹3,11,000
- New price range: ₹2,21,241 – ₹2,86,504
Commuter Motorcycles
TVS Raider 125
- Price reduction: Up to ₹8,085
- Multiple variants: All trim levels benefit
TVS Radeon
- Price reduction: ₹4,730 – ₹5,19
- Positioning: Entry-level affordability enhanced
Scooter Portfolio
TVS Jupiter 125
- Current price: ₹77,000
- New price: ₹70,667 (expected)
- Maximum savings: ₹7,355
TVS NTORQ 125
- Current price: ₹85,000
- New price: ₹77,778 (expected)
- Price reduction: Up to ₹8,530
TVS NTORQ 150
- Maximum savings: Up to ₹10,078
- TFT variant: Benefits from significant reduction
Suzuki Two-Wheeler Price Impact
Suzuki’s scooter portfolio benefits substantially from the GST restructuring.
Suzuki Burgman Street 125
- Price reduction: ₹6,444
- New price: ₹75,556 (expected)
- Positioning: Premium scooter segment accessibility improved
Suzuki Access 125
- Benefits: Substantial price reduction expected
- Market impact: Enhanced competitiveness against Honda Activa
Industry-Wide Impact and Market Response
Immediate Implementation Strategy
All major manufacturers have confirmed that revised pricing becomes effective from September 22, 2025. The timing coincides strategically with India’s festive season, potentially creating the industry’s best festive season in years.
Market Segmentation Effects
Entry-Level Segment (Sub-125cc)
- Average reduction: 8-10%
- Key beneficiaries: Hero Splendor, TVS Radeon, Honda Dream series
- Market impact: Increased accessibility for first-time buyers
Premium Commuter Segment (125-200cc)
- Average reduction: 8-12%
- Key beneficiaries: Hero Xtreme series, TVS Apache 160/200, Honda Shine
- Market impact: Enhanced value proposition against competition
Premium Performance Segment (200-350cc)
- Average reduction: 10-15%
- Key beneficiaries: TVS Apache 310, KTM 250 Duke, Royal Enfield 350cc range
- Market impact: Performance motorcycles become more accessible
Adverse Impact on Premium Bikes
Models above 350cc face significant price increases due to the new 40% GST rate:390 series: Substantial price increase expected
- Royal Enfield 450cc and 650cc: Major impact on pricing strategy
- Premium tourers: Increased costs may affect demand
Economic and Social Impact
The GST reduction is expected to stimulate unprecedented demand in the two-wheeler sector:
- Youth accessibility: Lower prices make bikes more accessible to young professionals
- Rural penetration: Enhanced affordability in tier-2 and tier-3 cities
- Economic growth: Potential boost to manufacturing and employment
- Festive season boost: Industry expects significant sales surge during September-November 2025
Timing and Market Strategy
The implementation during festive season 2025 represents strategic market positioning:
- Immediate effect: September 22, 2025 implementation
- Market timing: Coincides with peak buying season
- Consumer behavior: Expected surge in pre-purchase inquiries
Conclusion
The GST 2.0 implementation represents a paradigm shift in Indian two-wheeler accessibility, with Hero, Honda, TVS, and Suzuki positioned to benefit significantly from increased demand in the sub-350cc segment. Entry-level models experience the most substantial percentage-based reductions, while premium variants within the 350cc limit offer the highest absolute savings.
This comprehensive tax reform not only makes two-wheelers more affordable but also aligns with the government’s vision of promoting sustainable personal mobility across economic segments. For potential buyers, the period post-September 22, 2025, presents an exceptional opportunity to purchase two-wheelers at significantly reduced prices.
The industry anticipates this could be the catalyst for unprecedented growth, particularly during the festive season, as millions of Indians gain access to more affordable personal transportation options across Hero’s extensive commuter range, Honda’s reliable scooters, TVS’s performance-oriented portfolio, and Suzuki’s premium scooter offerings.
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