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Tax cuts will make everything from Bullet to Splendor cheaper, KTM and Pulsar will also be affected, know how much you will save
- appsamachar
- Sep 4
- 3 min read
The government has reduced GST on bikes up to 350cc. GST has been increased on bikes above 350cc. Now the dream of riding a Bullet can be fulfilled. The prices of many bikes like Royal Enfield, Bajaj KTM will be affected.
Just before the festive season, the government has made a big announcement for the two-wheeler market. Under the new GST rates, the tax on bikes up to 350cc has now been reduced to 18%. This means that small and mid-segment bikes will become cheaper for common customers. At the same time, bikes with engine capacity larger than 350cc have been put in the luxury category and the tax on them has been increased to 40%. While this decision may increase the sales of entry-level bikes, lovers of premium and high-performance bikes will have to spend more money.
Royal Enfield's small bikes are cheaper
This change will have a mixed effect for Royal Enfield. The company's popular bikes like Hunter 350, Classic 350, Meteor 350 and Bullet 350 will now become cheaper as only 18% GST will be levied on them, but, on the other hand, Himalayan 450, Guerilla 450, Scram 440 and 650cc series (Interceptor, Continental GT, Super Meteor and Shotgun) will now be taxed at 40%. This will increase their prices and demand in the adventure-tourer segment may slow down a bit.
Impact on Bajaj and Triumph bikes
Bajaj Auto's Dominar 400 and Pulsar NS400Z have now come under the 40% tax slab. Apart from this, Bajaj-Triumph's partnership models like Speed 400, Scrambler 400X and Thruxton 400 will also become expensive. Till now these were considered affordable options in the mid-capacity segment, but the increase in tax may affect their value-for-money image.
How much will the price of Splendor Plus be reduced
This decision of the government will further increase the purchase of two-wheelers during the festive season. For example, let us see how much cheaper the Hero Splendor Plus can become after the new GST rate is implemented. Currently, its ex-showroom price in Delhi is Rs 79,426. If the GST on it is reduced by about 10%, then the price can be reduced by about Rs 7,900. Customers will get direct benefit from this.
However, while buying the bike, other charges are added in addition to the ex-showroom price. This includes RTO charges of Rs 6,654, insurance premium of Rs 6,685 and other charges of about Rs 950. Adding all these, the on-road price of Splendor Plus in Delhi is currently around Rs 93,715. If the effect of the reduction in tax is fully visible, then in the coming time this bike can become much more affordable than before.
The entire KTM range will be expensive
KTM is famous for its sports and adventure bikes in India, but the new GST rates will affect its entire range. Most of the bikes in the Duke series, RC series and Adventure series are above 350cc, which will now be taxed at 40%. This means that the prices of KTM bikes will increase during the festive season and their sales may come under pressure.
If you want to buy a bike with an engine less than 350cc, like Royal Enfield Hunter or Classic, then this is a good opportunity for you, because now these bikes will be cheaper than before, but if your dream is to buy a mid and high-range bike like Himalayan 450, Bajaj Dominar 400 or KTM Adventure, then now you will have to keep a higher budget. While this decision of the government will benefit the common customers on one hand, it will be heavy on the pockets of those who love premium bikes.
News is originally taken from: http://bit.ly/4m1KrVB
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