11 Sep 2025 : Honda Motorcycle & Scooter India (HMSI) has announced a significant price reduction on its two-wheeler portfolio, passing on the benefits of the recent GST rate cut to customers. Prices of select scooters and motorcycles will drop by up to ₹18,000, making them more affordable ahead of the festive season.
The decision follows the government’s move to lower GST on two-wheelers to 18% from 28%, a long-standing demand of the auto industry aimed at boosting demand and reviving sales in the crucial entry-level segment.
Impact on Models
The price cut will apply to HMSI’s popular models, including the Activa, Dio, Shine, Unicorn, SP125, Hornet 2.0, and CB350 series. The exact price reduction will vary depending on the model and variant, with the biggest savings seen in premium motorcycles.
HMSI officials stated that the updated prices will take effect immediately at dealerships across India. Customers who have recently booked vehicles but are awaiting delivery will also benefit from the revised prices.
Boost for the 2-Wheeler Industry
The two-wheeler segment accounts for nearly 80% of India’s automobile market but has been facing sluggish growth due to rising input costs, inflation, and higher ownership expenses. Industry experts believe this price cut, combined with festive demand, could revive sales and help manufacturers regain lost momentum.
According to Society of Indian Automobile Manufacturers (SIAM) data, two-wheeler sales have remained below pre-pandemic levels, particularly in rural markets. Lower prices are expected to improve affordability for first-time buyers and encourage replacement purchases.
Industry & Expert Reactions
Auto industry analysts have welcomed HMSI’s move, calling it a bold step to pass on the entire GST benefit to customers. “This could trigger a positive chain reaction with other manufacturers likely to follow suit, resulting in an overall boost to the sector,” said an auto sector expert.
Consumer Impact
For consumers, this means better value for money and potential savings of ₹4,000 to ₹18,000 depending on the vehicle category. Dealers expect higher footfall in showrooms over the next few weeks, with festive offers and finance schemes further sweetening the deal.
Future Outlook
With the government’s emphasis on affordable mobility and electric vehicle adoption, experts suggest that such tax rationalisations will make petrol two-wheelers more competitive while the industry transitions toward EVs.
Summary:
HMSI has slashed prices of its scooters and motorcycles by up to ₹18,000, passing on GST rate cut benefits, boosting affordability and reviving two-wheeler demand ahead of the festive season.