The impact of GST 2.0, which is going to be implemented in India from September 22, is clearly visible on two-wheelers. The government has reduced GST from 28% to 18% on bikes and scooters with engines up to 350cc. At the same time, models with engines above 350cc have now come in the 40% tax slab. This is directly affecting both companies and customers.
The country’s largest two-wheeler manufacturer Hero MotoCorp has announced a reduction in the prices of its scooters and motorcycles. The company says that customers will get a benefit of up to ₹ 16,000 depending on the model and variant.
Destini 125: Price cut to ₹7,197
Pleasure+: Price cut to ₹6,417
Xoom 110: Price cut to ₹6,597
Xoom 125: Now cheaper to ₹7,291
Xoom 160: Most benefit, price cut to ₹11,602
Motorcycle Segment
Karizma 210: Price cut to ₹15,743
Xpulse 210: Price cut to ₹14,516
Xtreme 250R: Price cut to ₹14,055
Xtreme 160R and 125R: Up to ₹10,985 and ₹8,010 respectively Less
Splendor+, Super Splendor, Glamour X: Cut from ₹6,820 to ₹7,813
HF Deluxe and Passion+: Cheaper by ₹5,805 and ₹6,500
However, Harley Davidson X440 in Hero’s portfolio will not be affected by this change. Rather, this bike will now become more expensive.
After Hero, Classic Legends has also announced to pass on the full benefits of GST 2.0 to the customers. The company has said that now its Jawa and Yezdi motorcycles will be available at a price of less than ₹2 lakh. This includes popular models like Adventure, Roadster, Bobber and Scrambler.
These bikes come with 293cc and 334cc engines. Due to relief in GST, their prices have become more attractive than before for youth and avid riders.
The company has also launched the Ownership Assurance Programme. Under this, buyers will get 4 years/50,000 km warranty, one year roadside assistance and support of more than 450 service touchpoints.
Small engine bikes have benefited from GST 2.0, but premium motorcycles above 350cc are now getting expensive. Companies like Kawasaki are already running offers to clear the stock. For example, Kawasaki Versys 1100 is being given a discount of up to ₹ 1.10 lakh this month. The prices of such bikes are sure to increase after September 22.
It is clear from the new tax structure of the government that now buying bikes and scooters up to 350cc will be more beneficial for the customers. On the other hand, bikes with bigger engines will put a little more burden on the pockets of enthusiasts. Overall, if you are thinking of buying a Hero or Jawa-Yezdi bike, then this time could be right for you.
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