New GST Slabs Shake Up Motorcycle Prices in India: What Riders Need to Know

A Big Change for Two-Wheeler Buyers

Motorcycles are not just a mode of transport in India—they are a way of life. From daily commuters to adventure riders, millions depend on two-wheelers. But with the government introducing new GST slabs, the pricing landscape of motorcycles has shifted, leaving buyers and manufacturers to reassess their choices.

Understanding the New GST Slabs

Earlier, motorcycles across most categories attracted a 28% GST, regardless of engine capacity. The revised structure, however, has introduced differentiated slabs based on displacement and type. Smaller commuter bikes may now enjoy lower taxation, while premium and performance bikes could see higher levies. The move aims to balance affordability for the masses with higher revenue from luxury or high-performance models.

Impact on Budget-Friendly Motorcycles

For the largest chunk of the market—100cc to 150cc commuter motorcycles—the GST rate has been slightly reduced. This translates into marginally lower prices, making popular models from brands like Hero, Bajaj, and Honda more accessible to middle-class buyers. Experts believe this could boost sales in rural and urban markets where affordability is key.

Premium Segment Sees a Hike

On the other hand, motorcycles above 350cc, including cruisers, sportbikes, and premium adventure bikes, now fall under a higher GST slab. Brands like Royal Enfield, KTM, Harley-Davidson, and BMW Motorrad may see price tags climb. For enthusiasts, this means digging deeper into their pockets, although the demand in this niche segment is unlikely to collapse.

Electric Motorcycles Get a Boost

Interestingly, electric two-wheelers continue to benefit from a 5% GST slab, the lowest in the category. Combined with ongoing government subsidies, this could accelerate India’s transition toward eco-friendly mobility. Companies like Ola Electric, Revolt, and Tork Motors stand to gain from this favorable tax treatment.

The revised GST slabs are reshaping India’s motorcycle market. While commuter bikes get slightly cheaper and premium motorcycles become pricier, the clear winner appears to be the electric two-wheeler segment. For buyers, this means reassessing budgets and priorities, while for manufacturers, it’s an opportunity to innovate and cater to shifting demands. One thing is certain: motorcycles, regardless of price, will remain an integral part of India’s roads and culture.