Only Tax Policy That Will Help Bikers! » MotorOctane

2025 saw the growth and the fall of motorcycles at the same time. While everyone was celebrating the new GST structure – some bikers were hiding their tears due to the price hikes. The government said, this GST structure will make things more accessible for the general buyers – but they increased the prices of good motorcycles putting it in the luxury tax bracket. 
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Government Should Do This –

In the awe of increased prices of motorcycles that are having a displacement of above 350cc, we expect the government to think of this once again. Marking the 350cc segment as a luxury is not the right definition, the mark that defines the luxury sense of an item, especially a motorcycle needs to be re-defined. 

– Instead of 350cc above motorcycles, the mark can be either moved to 500cc or above (a half-litre bike instead can be termed luxury) 

– The definition can be even in the terms of power, taking bikes that produce more than 50bhp can be termed as luxury too. 

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In India, if 50 percent of motorcycle sales come from the commuter bike segment, then eventually 40 percent of sales out of the remaining 50 percent comes from the mid cc segment. And with the price rise, the demand will take a toll – not quickly but surely. 

Having a luxury GST tax capped at motorcycles having a 500cc engine or above will kill the confusion and the rise of tension among the buyers and the manufacturers. There are very few bikes above a certain segment.

From a manufacturers perspective, we already know Triumph, KTM and Bajaj have announced plans to downsize its engine. While we have seen lower cc models of KTM and Bajaj, it will not be a great move for Triumph to place a model in this segment. Yes, it will see a green graph in sales – but the buyers must also consider the heavy maintenance of these models. Sometimes, buyers generally see the first cost (buying cost) and disregard the aftersales maintenance and other expenses, and end up listing their motorcycles on some used sites. 

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Now as we say that increasing the cost for 500cc and above motorcycles must be done. Some of you might be raging at us too, right? But there’s something that we have in our pack. Alongside the price increase, we would like to ask the government if there’s any window of allowing bikers on the expressways. In foreign countries, high cc models are allowed on such roads. The same policy can be applicable in India too, where bikes above a certain cc (take 750cc for example) can be allowed to travel via expressways. The one who rides a 750cc bike, will surely not ride like a low experienced rider. And can eventually be able to ride maintaining good speed. 

Altering the tax policies will eventually help to make the motorcycles more accessible to the buyers. And also it will help the brand to build sales momentum without putting more efforts on downsizing their engines for just the sake of fitting in the new tax brackets.

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