New Delhi, October 1, 2025 – In a relief for bike enthusiasts, Hero MotoCorp and Bajaj Auto have announced that they will absorb the recent GST hike on premium motorcycles instead of passing the extra cost to customers.
The GST Council had recently raised the Goods and Services Tax (GST) on motorcycles above 350cc from 28% to 31%, making high-end bikes more expensive. However, both companies have decided to take the hit on their margins to keep prices stable and protect demand in the competitive market.
Why it Matters
- The move is expected to boost customer confidence, especially among young buyers in urban markets.
- Industry experts say this strategy may help Hero and Bajaj maintain market share against global rivals like Royal Enfield, Harley-Davidson, and KTM.
- Analysts believe the companies are prioritising volume growth over short-term profit margins.
What Companies Said
- A senior Hero official stated, “We don’t want enthusiasts to be discouraged by sudden price hikes. This is our way of supporting the biking community.”
- Bajaj Auto added that absorbing the GST hike will strengthen customer loyalty and brand trust.
Summary Table
| Factor | Details |
|---|---|
| Companies | Hero MotoCorp, Bajaj Auto |
| Policy Change | GST on bikes above 350cc raised from 28% to 31% |
| Impact | Price hike avoided for customers |
| Reason | Companies absorbing GST hike |
| Market Effect | Maintains affordability, boosts demand |
| Competition | Global brands like Royal Enfield, Harley-Davidson, KTM |
