Mid-capacity bikes to see up to ₹20,000 price cut

THE NEW GST regime, effective from September 22, has created a stark divide in the two-wheeler market, rewarding smaller bikes while hitting big motorcycles with a hefty tax increase.

- VIKRAM CHAUDHARY

For small cars and two-wheelers under 350 cc, which account for over 95% of the market, the news is welcome. Petrol, LPG, CNG, and hybrid cars with engines up to 1,200 cc, diesel cars up to 1,500 cc, and vehicles shorter than 4,000 mm will now attract an 18% GST, down from as high as 31% (including cess). SUVs and luxury cars see a modest reduction to 40%, while electric vehicles remain at 5%.

Sub-350 cc motorcycles will also benefit, seeing their GST fall from 28% to 18%, making them more affordable for first-time buyers and daily commuters.