GST 2.0: Hero MotoCorp slashes prices by up to ₹15,743; check model-wise benefits from Sept 22

Hero MotoCorp on Wednesday said it will fully pass on the benefit of the new GST 2.0 regime to its customers, a move that is expected to boost two-wheeler demand ahead of the festive season.

The world’s largest two-wheeler manufacturer said that the GST rate cut benefit would make its motorcycles and scooters cheaper by up to ₹15,743 from September 22.

The announcement comes after the GST Council last week approved a new two-tier structure for motorcycles, under which those with engines up to 350 cc will attract a lower tax rate of 18% compared to the earlier 28%.

Larger motorcycles above 350 cc will fall into a higher 40% slab, up from the effective 31% (28% GST + 3% cess).

Hero MotoCorp said the new rates will make mobility more affordable, especially for rural and semi-urban customers.

“We welcome the Government’s next-gen GST 2.0 reforms, which will boost consumption, empower GDP growth, and accelerate India’s journey to a $5 trillion economy,” Hero MotoCorp CEO Vikram Kasbekar said. “By passing on the full GST benefit to customers, Hero MotoCorp reaffirms its commitment to enabling mobility, empowering families, and supporting the vision of ‘Make in India’,” he added.

Under the new structure, mass-market commuter models such as the Splendor+, Glamour, Passion+, HF Deluxe, and scooters including Destini, Pleasure+ and Xoom will see significant price drops.

The Karizma 210 will witness the steepest reduction, of up to ₹15,743, while the Xpulse 210 and Xtreme 250R will be cheaper by over ₹14,000.

Hero advised customers to check final prices with Hero Premia dealerships nationwide.

Wider impact across brands

The GST Council’s decision is expected to benefit the commuter and mid-size motorcycle segments, which form the backbone of India’s two-wheeler industry.

Honda: Models like Shine, SP 125, SP 160, and H’ness CB350 series shift to the 18% slab.

Bajaj Auto: Platina 100, Pulsar 125, Pulsar 150, Dominar 250, and N250 move to 18%. Dominar 400 and NS400Z will attract the higher 40% rate.

TVS Motor: XL100, Jupiter, Apache RTR 160–225, Ronin 225, and Apache RR 310 shift to 18%.

Yamaha: R15, MT-15, Aerox 155, FZ25, R3 and MT-03 move into the lower bracket.

Royal Enfield: Classic 350, Bullet 350, Hunter 350, and Meteor 350 stay at 18%. However, Himalayan 450, Interceptor 650, Continental GT 650, Super Meteor 650, and Shotgun 650 shift to the 40% band.

Jawa: Jawa 350, 42 series and Perak move to 18%.

KTM: 390 series (Duke, RC, Adventure) and premium imports will attract 40%.

Triumph: Speed 400 and Scrambler 400X, along with its mid- and large-capacity portfolio, will move to 40%.

Honda (premium): CB500X, Rebel 500, CB650R, CBR650R, and Gold Wing shift to 40%.

Royal Enfield, Bajaj, TVS confirm GST benefit

Mid-size motorcycle maker Royal Enfield on Tuesday announced it would also pass on the entire GST benefit to customers, making its popular 350cc portfolio cheaper by up to ₹22,000.

The Hunter 350 Standard variant, earlier priced at ₹1,49,900 (ex-showroom), will now cost about ₹1,38,200 (ex-showroom). The mid variant will see a reduction of about ₹13,800, while the top variant will be cheaper by ₹14,100.

The Classic 350 Redditch edition will drop to around ₹1,81,800 (ex-showroom) from ₹1,97,253 (ex-showroom), while the top-end Chrome variant will see a reduction of over ₹18,000 to about ₹2,16,600 (ex-showroom).

“The latest GST reform will not only make motorcycles under 350cc more accessible but will also excite first-time buyers,” said B Govindarajan, MD of Eicher Motors and CEO of Royal Enfield.

Bajaj Auto made a similar announcement, offering ₹20,000 benefit on two-wheelers and KTM motorcycles, and up to ₹24,000 on the three-wheeler range.

"Effective from September 22, 2025, consumers can now celebrate an early start to the festive season with reduced prices across Bajaj and KTM motorcycles, alongside the Bajaj three-wheelers at dealerships nationwide," Bajaj Auto said.

TVS Motor Company on Monday said it will pass on the full benefit of the GST rate reduction to customers across its internal combustion engine portfolio.

With the GST Council reducing GST rates on ICE vehicles from 28% to 18%, there will be significant savings on the company's products, TVS Motor Co said in a statement without divulging details.