The Indian government has reduced the Goods & Services Tax (GST) rate on motorcycles and scooters with engine capacities up to 350cc, lowering it from 28% to 18%, effective 22 September 2025.
Honda Motorcycle & Scooter India (HMSI) has announced that it will fully pass on this benefit to its customers. As a result, most of Honda’s popular scooters and motorcycles under the 350cc category will see noticeable price reductions. Depending on the model, the savings range from about ₹5,000 to nearly ₹19,000.
Among the models gaining the most from this revision are scooters such as the Activa and Dio, commuter motorcycles like the Shine series and SP125, and the premium CB350 range. While these bikes enjoy lower prices, Honda is also reviewing the impact of the new 40% GST bracket applied to motorcycles above 350cc, which will affect its larger-capacity BigWing portfolio.
The timing of this change is significant, arriving just before the festive season. The reduced tax burden is expected to stimulate demand, particularly in semi-urban and rural markets where two-wheelers remain a primary means of mobility. This revision not only makes ownership more affordable but also helps buyers make quicker and more confident purchase decisions.
Honda Two-Wheelers – GST Benefit (Ex-Showroom Delhi)
| Model | Approximate Savings (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 |
| Shine 100 DX | Up to ₹ 6,256 |
| Livo 110 | Up to ₹ 7,165 |
| Shine 125 | Up to ₹ 7,443 |
| SP125 | Up to ₹ 8,447 |
| CB125 Hornet | Up to ₹ 9,229 |
| Unicorn | Up to ₹ 9,948 |
| SP160 | Up to ₹ 10,635 |
| Hornet 2.0 | Up to ₹ 13,026 |
| NX200 | Up to ₹ 13,978 |
| CB350 H’ness | Up to ₹ 18,598 |
| CB350 RS | Up to ₹ 18,857 |
| CB350 | Up to ₹ 18,887 |
