Intro

Honda two wheeler price reduction is now official in India, Honda Motorcycle & Scooter India has confirmed ex-showroom savings up to ₹18,887 on models up to 350cc after the GST rate on two wheelers dropped from 28% to 18%; for buyers that means immediate relief on popular scooters and commuter bikes as the festive season approaches.

Why it matters

Lower GST directly reduces ex-showroom prices, makes high volume scooters and motorcycles more affordable at a time when demand is high. The GST Council has reclassified two-wheelers up to 350cc at 18%. The new rates are expected to be implemented around September 22, just in time for the festive season.

Scope of the reduction

HMSI says the reduction is applicable on both scooters and motorcycles up to 350cc, as per the new 18% GST slab for this segment; above 350cc motorcycles are out of this slab. The communicated benefit is up to ₹18,887, varies by model and variant.

Model wise benefits

Model wise ceilings reported are Activa 110 (up to ₹7,874), Dio 110 (up to ₹7,157), Activa 125 (up to ₹8,259), SP 125 (up to ₹8,447), CB350 H’ness (up to ₹18,598), CB350 (up to ₹18,887); specific variant wise new prices will be updated by dealers once they get the broader updates.

GST context

GST Council has reclassified two wheelers up to 350cc at 18%, down from 28%, and above 350cc will move to a higher slab. Media tracking suggests the implementation date is around September 22, when many brands will start applying new tags.

Competitive landscape

Honda’s move is in line with the industry: Hero MotoCorp has published model wise GST benefits up to ₹15,743 and other brands have announced full pass through to boost demand. This means a near universal price recalibration across mass market two wheelers in India.

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Yamaha two-wheelers price cut: India Yamaha Motor passes full GST benefit on R15, MT-15, Fascino, RayZR, Aerox, FZ

What buyers should know

Keep in mind that the final ‘on-road’ price you pay will still include local RTO charges and insurance, which vary by city. The price cut applies to the ex-showroom cost, so the exact savings for you will depend on your location and the model you choose. Buyers can expect dealers to reflect the revised GST inclusive prices as stock turns over and billing systems get updated with new rates.

Closing note

By passing on the full GST benefit, Honda has made its popular commuter models significantly more accessible, a strategic move poised to drive strong sales and intensify competition during the festive season.