350cc Motorcycles may become Expensive and sub 350cc Motorcycles may become Affordable

August 28, 2025

GST Shake Up: Will 350cc+ Motorcycles Soon Cost a Lot More?

If you’ve been eyeing a premium motorcycle, you might want to act fast. The Indian government is considering a big change in the GST (Goods and Services Tax) structure, and it could hit riders where it hurts most, the wallet.

According to reports, motorcycles with an engine capacity of 350cc and above may soon attract a steep 40% GST rate, compared to the current 28% GST + 3% cess (31%).

Meanwhile, bikes under 350cc could actually get cheaper, with GST dropping from 28% to 18%.

Let’s break down what this means for you and the motorcycling community.

What’s Changing in GST for Motorcycles?

Bikes under 350cc → GST may be reduced to 18%.
Bikes 350cc and above → GST may increase to 40%.
Luxury cars → Will also fall under the 40% bracket.
Scooters → Safe from hikes, since all are below 350cc.

This two-slab structure (18% and 40%) is meant to simplify taxation while boosting revenue on luxury goods.

How Will This Impact Riders?

1. Premium Bikes May Get Pricier

If you’ve been planning to buy a Royal Enfield Classic 350, Meteor 350, Honda H’ness, KTM 390, Harley-Davidson X440, or Triumph Speed 400, expect to pay more once the 40% GST slab is implemented.

2. Royal Enfield Could Gain an Edge

Interestingly, Royal Enfield might benefit. Many of its bikes like the Hunter 350 and Bullet 350 are just under the 350cc limit, which means they’ll likely be taxed at the lower 18% GST slab. That makes them more attractive compared to rivals in the 350cc+ category.

3. Big Bikes = Big Costs

For riders eyeing superbikes or high-performance machines (650cc and above), this change could mean a massive jump in retail price. The premium motorcycle market, which has been growing steadily, may take a hit.

What About Riding Gear and Accessories?

Here’s something many riders might overlook gear and accessories could also get pricier.

While the GST hike is directly on motorcycles, brands often bundle helmets, jackets, and accessories with premium bikes. With reduced margins due to higher taxes, manufacturers and importers might adjust pricing across the board.

So, don’t be surprised if you see a hike in the cost of:

Helmets
Riding jackets and gloves
Luggage systems
Aftermarket parts and accessories

The Bigger Picture

The sub 350cc segment, which makes up 97% of India’s motorcycle market, will only get stronger thanks to the reduced GST rate.
Scooters, which saw 17% growth in FY25, will continue their upward ride.
The above 350cc market grew by 32% last year, but with this potential tax hike, growth might slow down as customers hold back purchases.

Should You Buy Now or Wait?

If you’re planning to buy a 350cc+ motorcycle, now might be the best time. Once the new tax structure kicks in, bikes in this category could become significantly more expensive.

And remember, it’s not just the bikes. Your riding gear and accessories which fall under 28% GST slab, could also see a price bump, so locking in purchases early could save you money.

Final Thoughts

The GST Council is expected to take a final call in its September 3–4, 2025 meeting. If approved, this reform will create a clear divide in India’s motorcycle market: