Ahead of the festive season, India cuts GST on two-wheelers up to 350cc while hiking its apply for higher-capacity bikes.
They are now more affordable, thanks to a cut in GST rate from 28 to 18 per cent. Buying bikes like KTM 160, 200, or 250, RE 350, & TVS could lead to more savings & may boost sales inIndia’s key budget segment.
Motorcycles above 350cc now placed in a new GST slab of 40 per cent, up from the previous 31 per cent (which included cess). It’s likely to make premium & performance bikes pricier than before.
Bikes such as the KTM 390s, RE 450/650cc, & Triumph 400cc may get costlier, & so could affordable performance motorcycles
The impact is expected to be most visible among entry-level premium buyers, whose customers were stretching their budgets to go from a commuter to a premium two-wheeler.
The GST change could impact international brands like Harley, Triumph, and BMW, as higher taxes on bigger bikes may slow sales of their affordable models in India.