Summary
In a move set to excite two-wheeler enthusiasts across India, Royal Enfield, Yamaha, and Honda have announced significant price cuts on their popular models following the GST 2.0 tax reforms. Starting September 22, 2025, the Goods and Services Tax (GST) on motorcycles and scooters up to 350cc has been reduced from 28% to 18%, slashing prices just in time for the festive season.
Royal Enfield Price Cuts: Classic 350, Meteor 350, Hunter 350 Get Cheaper
Royal Enfield confirmed that it will pass on the full GST reduction benefit to its customers. Popular models like Classic 350, Hunter 350, Meteor 350, Bullet 350, and Goan Classic 350 will see a price reduction.
However, bikes above 350cc such as the Himalayan 450, Guerilla 450, and 650cc range will become costlier, as GST for these models increases to 40% from the previous 28% + 3% cess. The exact new prices for Royal Enfield models will be announced on September 22, 2025, when GST 2.0 comes into effect.
Yamaha Announces GST Benefits: Up to ₹17,581 Off on Popular Models
Yamaha Motor India has also joined the GST price-cut wave. Under GST 2.0, customers will save big on motorcycles like R15, MT15, FZ-S Fi Hybrid, FZ-X Hybrid, Aerox 155 Version S, RayZR, and Fascino.
| Model | Old Price | New Price | GST Benefit |
|---|---|---|---|
| R15 | ₹2,12,020 | ₹1,94,439 | ₹17,581 |
| MT15 | ₹1,80,500 | ₹1,65,536 | ₹14,964 |
| FZ-S Fi Hybrid | ₹1,45,190 | ₹1,33,159 | ₹12,031 |
| FZ-X Hybrid | ₹1,49,990 | ₹1,37,560 | ₹12,430 |
| Aerox 155 Version S | ₹1,53,890 | ₹1,41,137 | ₹12,753 |
| RayZR | ₹93,760 | ₹86,001 | ₹7,759 |
| Fascino | ₹1,02,790 | ₹94,281 | ₹8,509 |
Yamaha’s Chairman, Itaru Otani, said the move will boost demand during the festive season and make two-wheelers more affordable for Indian customers.
Honda Activa and Other Models: Up to ₹18,887 Price Drop
Honda Motorcycle and Scooter India (HMSI) has also slashed prices across its range, with popular scooters like Activa and Dio and motorcycles like Shine, Unicorn, and CB350 series seeing price reductions of up to ₹18,887.
| Model | Maximum GST Benefit (₹) |
|---|---|
| Activa 110 | 7,874 |
| Dio 110 | 7,157 |
| Activa 125 | 8,259 |
| Shine 125 | 7,443 |
| SP125 | 8,447 |
| CB125 Hornet | 9,229 |
| Unicorn | 9,948 |
| SP160 | 10,635 |
| Hornet 2.0 | 13,026 |
| NX200 | 13,978 |
| CB350 H’ness | 18,598 |
| CB350RS | 18,857 |
| CB350 | 18,887 |
Honda said the move will boost personal mobility and stimulate economic growth by making vehicles affordable to a wider audience.
What the GST 2.0 Reform Means for Buyers
- 18% GST on two-wheelers up to 350cc: Lower prices for most commuter and mid-range motorcycles.
- 40% GST on luxury bikes above 350cc: Higher prices for premium and adventure motorcycles.
- Uniform 18% GST on auto components: Simplified taxation structure for spare parts.
- Reduced GST on agricultural machinery: Farmers benefit from a cut in GST from 12% to 5% on tractors and equipment.
Impact on the Auto Industry
The GST 2.0 move comes right before the festive season, a period when vehicle demand peaks in India. Industry experts believe that this tax reduction will:
- Boost sales of commuter motorcycles and scooters.
- Make two-wheelers more affordable for first-time buyers.
- Drive economic growth in rural and urban markets alike.
Final Thoughts: Royal Enfield, Yamaha, and Honda Slash Prices After GST Cut
Starting September 22, 2025, two-wheeler buyers in India will witness significant price cuts on popular models from Royal Enfield, Yamaha, and Honda. While premium bikes above 350cc will see a price hike, the new GST 2.0 rates promise to make mobility more affordable for millions of Indians.
If you’re planning to buy a two-wheeler, this festive season might be the perfect time to book your dream ride.
Note: All information and images used in this content are sourced from Google. They are used here for informational and illustrative purposes only.
FAQs on GST 2.0 Price Cuts for Royal Enfield, Yamaha, and Honda Two-Wheelers
1. When will the new GST 2.0 prices for two-wheelers come into effect?
The revised GST 2.0 prices will be applicable from September 22, 2025, across India for all two-wheelers up to 350cc, making them more affordable for buyers.
2. Which Royal Enfield models are getting cheaper after the GST cut?
Models like Classic 350, Meteor 350, Hunter 350, Bullet 350, and Goan Classic 350 will become cheaper under the new 18% GST rate effective September 22, 2025.
3. Will any Royal Enfield bikes get costlier after the GST hike?
Yes, all Royal Enfield motorcycles above 350cc like the Himalayan 450, Guerilla 450, and 650cc series will become costlier as GST rates for this segment rise to 40%.
4. How much price reduction has Yamaha announced for its models?
Yamaha models like R15, MT15, FZ-S Fi Hybrid, Aerox 155, and RayZR will get price cuts of up to ₹17,581, effective from September 22, 2025.
5. What is the maximum price cut Honda has announced after the GST revision?
Honda is offering price reductions of up to ₹18,887 on models like Activa, Dio, Shine, Unicorn, and CB350 series under GST 2.0.
6. What is the new GST rate for two-wheelers under 350cc?
Under GST 2.0, two-wheelers up to 350cc will now attract only 18% GST, reduced from the earlier 28% slab, making them significantly more affordable.
7. Will the new GST rates also affect auto components and agricultural machinery?
Yes, auto components now fall under a uniform 18% GST rate, and agricultural machinery like tractors and harvesters will attract a reduced 5% GST, benefiting the farming sector.
8. Is this price cut applicable only for the festive season?
No, the GST 2.0 price cuts are permanent under the new tax structure. However, festive season discounts from manufacturers may further boost savings for buyers.
9. How will GST 2.0 impact premium motorcycles and luxury vehicles?
Premium motorcycles above 350cc, luxury cars, and SUVs will now attract 40% GST, making them costlier compared to budget-friendly commuter bikes.
10. Why did the government reduce GST on two-wheelers?
The GST reduction aims to boost affordability, encourage personal mobility, and stimulate economic growth, especially in rural and urban markets ahead of the festive season.