In order to pass on the benefits of the GST rate cut to customers, two-wheeler maker Hero MotoCorp on Wednesday said it will cut prices of its various models by up to Rs 15,743, with effect from September
22.
Customers can now avail price benefits of up to Rs 15,743 on select models (ex-showroom Delhi), making motorcycles such as the Splendor+, Glamour, Xtreme range and scooters like the Xoom, Destini and Pleasure+ even more accessible, Hero MotoCorp said in a regulatory filing.
Welcoming the GST rate reduction, Hero MotoCorp CEO Vikram Kasbekar said the government’s next-gen GST 2.0 reforms will boost consumption, empower GDP growth, and accelerate India’s journey to a $5-trillion economy.
“In addition, more than half of the Indian households use two-wheelers for their daily needs, making it critical for mass mobility,” he said, adding that the timing is opportune and ahead of the festive season.
It makes two-wheelers more affordable and accessible for India’s largest consumer base, while giving a strong demand push, Kasbekar noted.
Meanwhile, two-wheeler maker TVS Motor Company on September 8 also announced to cut prices, to be effective from 22 September 2025.
“TVS Motor Company (TVSM) will pass on the full benefit of GST rate reduction to customers across its ICE portfolio, following the recent reforms introduced by the GST Council. With the Council reducing GST rates on ICE vehicles from 28% to 18%, there will be significant savings on our products,” said TVS Motor in a press release.
Yamaha has also decided to reduce prices by up to Rs 17,581 to pass on the GST cut benefits.
Meanwhile, four-wheeler makers Tata Motors, Mahindra & Mahindra, Hyundai and Renault India, among other companies, have also announced cuts in their prices to pass on GST cuts.
56th GST Council Meeting
Last week, the GST Council in its 56th meeting announced rate rationalisation across items from daily use shampoo and hair oil to automobiles.
Motorcycles up to 350cc engine capacity (including mopeds and scooters with auxiliary motors) will now attract 18% GST from September 22, down from 28%. However, Motorcycles above 350cc, including Royal Enfield 650cc, Harley-Davidson, or premium KTM models, will now attract 40% GST. So, premium bike enthusiasts will have to shell out more.
On four-wheelers, petrol, CNG and LPG cars with engine capacity up to 1200cc and length up to 4000 mm will now attract 18% GST, lower from the earlier 28%. Diesel cars with engine capacity up to 1500cc and length up to 4000 mm also get the lower 18% GST rate.
Cars with engine capacity above 1200cc (petrol/CNG/LPG) or above 1500cc (diesel) or length more than 4000 mm will now attract a 40% GST, as compared with 28% (plus 17%-22% compensation cess) earlier. It means that the tax on such vehicles has been reduced to 40%, compared with 45%-50%.
