TL;DR
A GST reduction on two-wheelers up to 350cc is prompting Indian manufacturers like Hero, Royal Enfield, Honda, and Bajaj to focus on and launch new models in this segment, making them more affordable and feature-rich.
The Indian two-wheeler market is undergoing a significant strategic shift, with major manufacturers increasingly focusing on the sub-350cc segment following the recent reduction in GST rates. The government's decision to lower the Goods and Services Tax on two-wheelers with engines up to 350cc from 28% to 18% has prompted key players like Hero MotoCorp, Royal Enfield, Honda, and Bajaj Auto to ramp up their product strategies in this thriving category.
Industry executives indicate that this tax relief is leading to a recalibration of product portfolios, with manufacturers aiming to introduce more enhanced performance and advanced features within the sub-350cc bracket. This move is expected to benefit a large segment of consumers by making motorcycles in this popular category more affordable and feature-rich.
The sub-350cc segment has always been a cornerstone of the Indian two-wheeler market due to its accessibility and practicality for daily commutes and touring. With the added incentive of reduced GST, manufacturers are poised to launch a wave of new and updated models, intensifying competition and offering consumers a wider array of choices.