Honda Motorcycle and Scooter India (HMSI) has announced significant reductions in prices across its entire range of two-wheelers after the Goods and Services Tax (GST) on motorcycles and scooters of 350cc and below was revised from 28% to 18%. The price benefit to customers can be as high as ₹18,887, depending upon the model. The company stated that the new prices are to take effect immediately.
Price cuts on popular scooters and bikes
Both the scooters and motorcycles will be affected. The price cuts will be on best-selling scooters, such as the Activa 110, Activa 125, Dio 110, and Dio 125, and popular commuter motorcycles like the Shine, Unicorn, Livo, SP125, and SP160.
This move is anticipated to reduce the cost of personal mobility, specifically to the mass market customers who typically use two-wheelers for everyday commuting.
Company’s statement
Yogesh Mathur, Director of Sales and Marketing at HMSI, welcomed the government’s step, saying:
“We welcome the Indian government’s recent GST reform. This strategic initiative will not only improve personal mobility but also boost economic growth. The reduction in GST on two-wheelers and spare parts is a timely and forward-looking step, making vehicles more affordable and strengthening the overall ecosystem.”
Model-wise GST benefit (Ex-showroom, Delhi)
- Activa 110: up to ₹7,874
- Dio 110: up to ₹7,157
- Activa 125: up to ₹8,259
- Dio 125: up to ₹8,042
- Shine 100: up to ₹5,672
- Unicorn: up to ₹9,948
- Hornet 2.0: up to ₹13,026
- NX200: up to ₹13,978
- CB350 H’ness: up to ₹18,598
- CB350RS: up to ₹18,857
- CB350: up to ₹18,887
GST Updates From September 22
September 22, 2025 will be the date of the official GST changes. Under the new taxation regime:
Two-wheelers up to 350cc, small cars, three-wheelers, buses, trucks and ambulances will be charged 18% down from 28%.
Motorcycles over 350 will be charged a higher GST rate of 40% which may increase prices.
Effect on the market.
By utilizing the entire tax advantage, Honda has provided buyers with a direct incentive to buy new scooters and motorcycles at a reduced price. Also, the timing is important, with the festive season approaching, where the trend is to see higher vehicle sales.
Experts in the industry shared that the decision will increase demand, help both rural and urban buyers, and strengthen the two-wheeler segment; however, for consumers who are looking at high-capacity bikes, they might have some price preparation, due to the new 40% GST slab.
With this change, Honda has positioned itself well within the market, with more value to offer to customers, and is further establishing alignment with the government’s vision of also enabling mobility and growth.
