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Income Tax 1 November 2026

GST 2.0 Slows Growth of 350cc+ Motorcycles

Eight months after India introduced the GST 2.0 tax regime, sales of motorcycles sized 350 cc and above have stalled, with dealers noting a 12% year‑on‑year drop. Higher taxes are inflating on‑road prices, prompting buyers to postpone purchases and manufacturers to delay new launches.

The new GST 2.0 regime, now eight months old, is tightening costs for motorcycles over 350 cc. Dealers report a clear slowdown in sales as higher tax pushes prices up.

  • Price impact: GST increase adds to on‑road price, deterring price‑sensitive buyers.
  • Sales dip: Showroom footfall and bookings for 350 cc‑plus bikes have fallen 12% YoY.
  • Market response: Manufacturers are delaying launches and offering limited discounts.

Read the full report on [Financial Express](https://www.financialexpress.com/auto/bike-news/gst-2.0-stifles-growth-of-350cc-and-bigger-bikes/4374202/).

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