The Indian automobile sector has entered a new era with the implementation of GST 2.0, a reform designed to simplify tax structures and boost affordability. This new regime has slashed prices across several segments, making cars and bikes more accessible for Indian buyers.
One of the most significant outcomes is that two-wheelers, hatchbacks, SUVs, and even some premium models are now available at lower prices. Whether you’re planning to buy your first commuter bike, upgrade to a stylish SUV, or simply curious about how GST 2.0 reshaped vehicle pricing, this guide will give you the full list of cars and bikes that got cheaper under GST 2.0.
Why GST 2.0 Matters for Automobile Buyers
The Goods and Services Tax (GST) was introduced in 2017, unifying India’s complex tax system. However, the automobile industry often complained about high taxation, especially for two-wheelers and SUVs. With GST 2.0, the government has responded by reducing slabs for key categories.
Key Highlights of GST 2.0 for Automobiles:
- Two-wheelers under 350cc now fall into a lower tax bracket, reducing prices significantly.
- Hatchbacks and compact sedans see tax relief, encouraging middle-class buyers.
- SUVs and electric vehicles receive targeted benefits to boost sales and eco-friendly adoption.
- The move aims to make mobility more affordable for families, youth, and rural India.
Read Also: Mercedes-Benz EQE Sedan 2026 India Launch: Luxury Meets Innovation in Electric Sedans
Full List of Bikes That Get Cheaper Under GST 2.0
Two-wheelers remain the backbone of India’s mobility. With GST 2.0, bikes and scooters across brands like Royal Enfield, Hero, Honda, Bajaj, and TVS have become more budget-friendly.
1. Royal Enfield Motorcycles
- Hunter 350 → Approx. ₹1.30 lakh (cheaper by ₹12,000)
- Bullet 350 → Approx. ₹1.50 lakh (cheaper by ₹15,000)
- Classic 350 → Approx. ₹1.75 lakh (cheaper by ₹18,000)
- Meteor 350 → Approx. ₹2.00 lakh (cheaper by ₹20,000)
Royal Enfield benefits strongly from the reduced tax rate, making their iconic thumping machines more accessible.
2. Hero MotoCorp
- Splendor+ → ₹75,000 (cheaper by ₹5,000)
- HF Deluxe → ₹68,000 (cheaper by ₹4,500)
- Glamour 125 → ₹85,000 (cheaper by ₹6,000)
- Xpulse 200 4V → ₹1.40 lakh (cheaper by ₹10,000)
As India’s largest two-wheeler maker, Hero’s commuter bikes see notable reductions, directly benefiting rural and working-class riders.
3. Honda Motorcycles
- Activa 6G → ₹75,000 (cheaper by ₹5,500)
- Shine 125 → ₹84,000 (cheaper by ₹6,000)
- H’ness CB350 → ₹1.85 lakh (cheaper by ₹14,000)
- Hornet 2.0 → ₹1.35 lakh (cheaper by ₹9,000)
Honda’s scooters like Activa, which dominate Indian households, become more affordable, boosting urban mobility.
4. Bajaj Auto
- Pulsar 150 → ₹1.10 lakh (cheaper by ₹7,500)
- Pulsar N160 → ₹1.25 lakh (cheaper by ₹9,000)
- Avenger 220 Cruise → ₹1.45 lakh (cheaper by ₹11,000)
- Dominar 400 → ₹2.10 lakh (cheaper by ₹20,000)
Bajaj’s sporty commuter segment sees good relief, helping younger buyers upgrade to premium Pulsars.
5. TVS Motorcycles
- Apache RTR 160 4V → ₹1.20 lakh (cheaper by ₹8,000)
- Apache RTR 200 4V → ₹1.40 lakh (cheaper by ₹10,000)
- Raider 125 → ₹95,000 (cheaper by ₹6,500)
- TVS Jupiter → ₹78,000 (cheaper by ₹5,500)
TVS bikes, popular for their sporty looks and strong performance, benefit across segments.
6. Electric Two-Wheelers
GST 2.0 gives a special push to EVs:
- Ola S1 Pro → ₹1.15 lakh (cheaper by ₹15,000)
- Ather 450X → ₹1.30 lakh (cheaper by ₹17,000)
- TVS iQube → ₹1.20 lakh (cheaper by ₹12,000)
The reduced GST and subsidies make electric scooters far more attractive.
Full List of Cars That Get Cheaper Under GST 2.0
Cars also witness significant reductions under GST 2.0. Hatchbacks, compact SUVs, and even luxury models now cost less, opening up new options for buyers.
1. Maruti Suzuki
- Alto K10 → ₹4.25 lakh (cheaper by ₹20,000)
- Swift → ₹5.80 lakh (cheaper by ₹30,000)
- Baleno → ₹7.00 lakh (cheaper by ₹35,000)
- Brezza → ₹8.70 lakh (cheaper by ₹40,000)
As the market leader, Maruti Suzuki’s price cuts are expected to boost sales significantly in the hatchback and compact SUV segments.
2. Hyundai
- Grand i10 Nios → ₹5.50 lakh (cheaper by ₹28,000)
- i20 → ₹7.20 lakh (cheaper by ₹35,000)
- Creta → ₹10.20 lakh (cheaper by ₹50,000)
- Venue → ₹9.00 lakh (cheaper by ₹42,000)
Hyundai’s bestsellers like the Creta and Venue receive strong price cuts, likely to attract SUV lovers.
3. Tata Motors
- Tiago → ₹5.20 lakh (cheaper by ₹25,000)
- Altroz → ₹7.00 lakh (cheaper by ₹32,000)
- Nexon → ₹9.20 lakh (cheaper by ₹45,000)
- Harrier → ₹14.80 lakh (cheaper by ₹70,000)
Tata, already rising in popularity, will gain further momentum with these reductions.
4. Mahindra
- Bolero → ₹9.50 lakh (cheaper by ₹50,000)
- Scorpio-N → ₹12.20 lakh (cheaper by ₹60,000)
- XUV700 → ₹14.50 lakh (cheaper by ₹75,000)
- Thar Roxx → ₹11.80 lakh (cheaper by ₹65,000)
Mahindra’s rugged SUVs, a favorite in rural and adventure markets, have become even more appealing.
5. Kia
- Sonet → ₹8.60 lakh (cheaper by ₹40,000)
- Seltos → ₹10.50 lakh (cheaper by ₹55,000)
- Carens → ₹12.00 lakh (cheaper by ₹60,000)
Kia’s modern designs combined with price cuts will strengthen its presence in the urban family segment.
6. Luxury Cars (Selective Reductions)
- Mercedes-Benz GLA → ₹43 lakh (cheaper by ₹2.5 lakh)
- BMW X1 → ₹45 lakh (cheaper by ₹2.8 lakh)
- Audi Q3 → ₹44 lakh (cheaper by ₹2.7 lakh)
Luxury brands also benefit, though their reductions are percentage-based rather than absolute.
Impact of GST 2.0 on Buyers
- Affordability Boost: Two-wheelers now fall into the aspirational budget range for students, professionals, and rural households.
- SUV Craze Gets Stronger: With price cuts, compact SUVs like Hyundai Creta, Kia Sonet, and Tata Nexon will see booming demand.
- Push for EV Adoption: Cheaper electric scooters and cars will accelerate India’s green mobility mission.
- Middle-Class Relief: Families can now plan car purchases without stretching budgets.
Read Also: The Complete Guide to Car Loans in Canada: Rates, Approval, and Buying Tips for 2025
Industry Reactions
- Automobile Manufacturers: Excited about the surge in sales and market revival.
- Dealers: Expect higher footfalls during festive seasons.
- Consumers: Thrilled about finally being able to upgrade vehicles without heavy tax burdens.
Conclusion
The arrival of GST 2.0 is a game-changer for India’s automobile industry. By lowering taxes on two-wheelers, hatchbacks, SUVs, and even luxury models, the government has made mobility more affordable for millions of Indians.
Whether it’s a Hero Splendor for daily commutes, a Royal Enfield for weekend rides, a Maruti Swift for family needs, or a Hyundai Creta for SUV lovers, there’s something for everyone in this new tax regime.
This reform not only boosts sales but also fuels aspirations, making cars and bikes more accessible while promoting electric mobility for a sustainable future.
So, if you’ve been waiting to buy a car or bike, GST 2.0 might just be the perfect reason to drive home your dream vehicle.