Will the Two-Wheeler Industry Fully Pass on GST Benefits?
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Synopsis
In a significant move, Yamaha Motor India will fully transfer the benefits of the recent GST rate cut on two-wheelers to customers starting September 22. This decision aligns with industry giants like TVS and Bajaj, promising reduced prices just in time for the festive season, which could stimulate demand for motorcycles and scooters.
Key Takeaways
- Yamaha Motor India to pass full GST benefits to customers.
- Price cuts for models like R15 and MT15 up to Rs 17,500.
- TVS and Bajaj Auto also reducing prices significantly.
- New GST rate for two-wheelers is 18%.
- Price cuts effective from September 22.
New Delhi, Sep 9 (NationPress) Yamaha Motor India declared on Tuesday that it will fully transfer the advantages of the recent GST rate reduction on two-wheelers to its customers starting September 22.
With this announcement, Yamaha aligns itself with other leading manufacturers like TVS, Bajaj Auto, and Royal Enfield, who have already pledged to offer the total benefit of the tax reduction to their clientele.
During its 56th meeting, the GST Council lowered the tax rate on internal combustion engine (ICE) two-wheelers from 28% to 18%.
This change is anticipated to make motorcycles and scooters more affordable in time for the festive season, thereby boosting demand.
India Yamaha Motor indicated that its models, including the R15, MT15, FZ series, Aerox 155, RayZR, and Fascino, will experience price reductions of up to Rs 17,500.
Chairman Itaru Otani expressed gratitude to the government for the "timely reduction" and stated that Yamaha is pleased to pass these full benefits to its customers.
TVS Motor Company also confirmed that all its popular motorcycles, including the Apache, Ronin, Raider, and Sport, along with scooters like Ntorq, Jupiter, and Zest, will see price decreases from September 22.
However, the prices of its electric vehicles, including the iQube, Orbiter, and TVS X, will remain unchanged as the GST rates on EVs remain the same.
Bajaj Auto announced that its two-wheelers will see price cuts of up to Rs 20,000, while prices for three-wheelers will drop by up to Rs 24,000.
The company noted that all Bajaj and KTM models will reflect the revised pricing once the reforms are implemented.
Royal Enfield stated that bikes under 350cc, such as the Classic 350, Bullet 350, Meteor 350, Hunter 350, and Goan Classic 350, will be more affordable due to the lower GST.
However, larger bikes like the Himalayan 450, Guerrilla 450, Scram 440, and the 650cc range will become more expensive as they fall under a higher GST slab.
Industry experts believe these price reductions will not only rejuvenate demand in the two-wheeler sector but also incentivize first-time buyers during the festive season.
Point of View
I recognize the importance of this GST reduction in the two-wheeler sector. It not only promises affordability but also revitalizes consumer interest ahead of the festive season. The collaborative approach of major manufacturers in passing on these benefits is commendable and reflects a strong commitment to supporting the market and consumers alike.
NationPress
09/09/2025
Frequently Asked Questions
What is the new GST rate for two-wheelers?
The GST rate on internal combustion engine two-wheelers has been reduced from 28% to 18%.
Which companies are passing on the GST benefits?
Yamaha, TVS, Bajaj Auto, and Royal Enfield are among the companies passing on the full benefits of the GST cut to their customers.
When will the price cuts take effect?
The price cuts will take effect from September 22.
How much can customers expect to save?
Customers can expect price reductions of up to Rs 20,000 on Bajaj two-wheelers and Rs 17,500 on Yamaha models.
Will electric vehicle prices change?
No, the prices of electric vehicles will remain unchanged as the GST rates on EVs are still the same.
