Introduction
India’s two-wheeler market is set for a major transformation following the recent GST cut on motorcycles under 350cc. With reduced taxation, leading manufacturers like Hero MotoCorp, Bajaj Auto, Royal Enfield, and Honda are recalibrating their strategies to dominate the affordable performance segment.
This move is not just a policy tweak — it’s a market disruptor that could redefine how Indian consumers buy and finance motorcycles in the coming years.
1. The GST Cut: A Game-Changer for the Industry
The Indian government’s decision to reduce GST rates on sub-350cc bikes aims to boost sales and make personal mobility more affordable.
Previously taxed at 28%, the new effective rate brings down prices by up to ₹8,000–₹20,000, depending on the model.
This reduction is expected to benefit:
Commuter and mid-range motorcycle buyers
Manufacturers focusing on volume segments
Financial institutions offering two-wheeler loans
2. Hero MotoCorp’s Strategic Expansion
Hero MotoCorp, already a market leader in commuter bikes, plans to strengthen its presence in the 150–300cc segment. Models like the Hero Xtreme 210 and Xpulse series are expected to gain traction among urban and rural youth seeking value and adventure at an affordable price.
3. Bajaj Auto’s Aggressive Line-Up
Bajaj Auto is leveraging the GST cut to expand its Pulsar and Dominar portfolios, bridging the gap between commuters and enthusiasts. The company is focusing on new Pulsar NS and N series models in the 200–250cc category to attract price-sensitive buyers transitioning from entry-level bikes.
4. Royal Enfield’s Sub-350cc Revival
Royal Enfield, known for its classic 350cc engines, is now emphasizing lighter, more affordable variants. The Hunter 350 and upcoming Bullet 350 refresh are positioned to capture younger riders looking for iconic design with improved fuel efficiency and lower price points.
5. Honda’s Re-entry into the Affordable Performance Space
Honda Motorcycle and Scooter India (HMSI) is expected to revive its CB series and introduce new sub-350cc models to compete with Bajaj and Hero. With the GST benefit, Honda can now price its models more competitively, particularly in Tier-II and Tier-III cities.
7. The Sub-350cc Market: India’s Growth Engine
The sub-350cc category now represents over 80% of India’s two-wheeler market. With improved affordability, this segment is likely to grow at a CAGR of 10–12% over the next three years.
Brands are focusing on performance, design, and financing options to appeal to first-time buyers and upgraders.
Conclusion
The GST cut has not just reduced prices — it has reshaped India’s two-wheeler landscape. With Hero, Bajaj, Royal Enfield, and Honda gearing up for intense competition in the sub-350cc market, buyers are in for a golden age of affordable performance.
As financing becomes easier through platforms like Vizzve Finance, India’s motorcycle boom is expected to accelerate, driving both economic growth and consumer empowerment.
FAQs
1. What is the new GST rate for two-wheelers under 350cc?
The GST on two-wheelers under 350cc has been reduced from 28% to 18%, making bikes significantly more affordable.
2. Which brands benefit most from this GST cut?
Hero MotoCorp, Bajaj Auto, Royal Enfield, and Honda are among the biggest beneficiaries due to their strong presence in the sub-350cc segment.
3. How will this affect bike prices?
Depending on the model, buyers can expect savings between ₹8,000 and ₹20,000, leading to higher sales and better loan accessibility.
4. Will electric two-wheelers also benefit from this GST change?
EVs already enjoy a 5% GST rate, but the price gap between ICE and electric bikes will now narrow, encouraging broader adoption.
5. What role does Vizzve Finance play in this market change?
Vizzve Finance provides affordable auto loans, EMI plans, and financial analysis, ensuring buyers benefit from the GST cut while managing their budgets effectively.
Published on : 19th October
Published by : Reddy kumar
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