How GST Changes Affected Hero Splendor, HF Deluxe, and Other Bikes
Understanding the GST Change
In September 2025, India’s government made a big change to the Goods and Services Tax (GST) system for two-wheelers. This new version of GST is often called “GST 2.0.”
Under this new rule:
Bikes with engine capacity up to 350cc are now taxed at 18%.
Earlier, the tax was 28%, so this means taxes have gone down for small and medium bikes.
For bikes above 350cc, the tax has gone up to 40%. Earlier, these were also taxed at 28%.
This change shows a clear goal — to reduce prices for common commuter bikes used by daily riders and increase taxes on luxury or big-engine bikes.
India’s two-wheeler market mostly includes smaller bikes like the Hero Splendor, Hero HF Deluxe, TVS Star City, Bajaj Platina, and others. Almost 98% of motorcycles sold in India have engines below 350cc, according to industry data.
So, this GST cut helps a very large number of bike buyers.
Price Drop After GST
Because the GST rate for small bikes went down, many popular commuter bikes became cheaper.
Some reports suggested these findings:
The Hero HF Deluxe (97.2cc) may become cheaper by around ₹5,500–₹6,000 in ex-showroom price.
The Hero Splendor Plus could see a price drop of around ₹6,000–₹7,000.
Across India, most bikes up to 350cc now cost between ₹5,000 and ₹12,000 less than before, depending on the model and state.
Companies like Hero MotoCorp and TVS Motor confirmed they will fully pass this tax benefit to customers.
So, the real savings for the customer depend on the brand, location, and variant. For example, ex-showroom prices in Delhi might be slightly different from those in Maharashtra or Karnataka due to different state charges.
Why This Matters to Bike Buyers
If you are planning to buy a new two-wheeler, this GST change gives you a good chance to save money. But before you buy, here are a few simple and important points to understand:
Timing Matters:
The new rate started from 22 September 2025. If the dealer bills your bike before this date, you may not get the new GST rate. So, make sure the invoice date reflects the new rule.
Check the New Price List:
Ask your dealer for the updated ex-showroom price after the GST change. Compare it with the old price to know the real benefit you are getting.
Manufacturers May Differ:
Not all companies may reduce prices equally. Some may keep a small part of the gain. Ask your dealer whether the full GST benefit is being passed on.
Other Costs Stay Same:
Even though GST has dropped, other costs like insurance, registration, and road tax still apply. These charges differ from state to state.
Special Offers or Discounts:
Some brands may use this period to add extra discounts or festive offers. You can negotiate for accessories or free services using the tax cut as your advantage.
Resale Value:
Since new bikes have become cheaper, the resale value of old bikes may fall slightly. If you are planning to sell your old bike, you might get a bit less than before.
Example: Hero Splendor and HF Deluxe
Both Hero Splendor and HF Deluxe are among India’s best-selling bikes. They are known for their mileage, simple design, and low maintenance.
After GST changes:
The Hero Splendor+ Xtec, which was priced around ₹79,000 (ex-showroom Delhi), is now roughly ₹73,000–₹74,000.
The HF Deluxe, previously about ₹69,000 (ex-showroom), now costs near ₹63,500–₹64,000.
That’s almost ₹5,000–₹6,000 in direct savings, plus possible festive or dealer discounts.
Impact on Other Bike Segments
Bikes like Bajaj Platina, TVS Radeon, and Honda CD 110 Dream also saw similar reductions.
Models above 350cc, like Royal Enfield Himalayan 450, KTM Duke 390, or Harley Davidson X440, became much costlier. Their prices rose because of the new 40% GST rate. Some saw an increase of ₹20,000–₹60,000 depending on the brand.
So, for daily users, the new GST policy is a positive change, but for premium bike enthusiasts, it’s a setback.
Things to Watch Before Buying
Here’s a simple checklist you should follow before booking your new bike:
Check if the bike is under 350cc (for example, Hero Splendor = 97.2cc).
Confirm the post-GST 2.0 price with the dealer.
Make sure the invoice date is after the new GST rule date (22 Sept 2025).
Compare the on-road cost (ex-showroom + RTO + insurance) before and after the GST change.
If taking a loan or EMI option, ask your financer to update the loan amount based on the new reduced price. This will slightly reduce your monthly EMI.
Check your city’s RTO and road tax percentage, as that still affects final cost.
Negotiate extras such as helmets, seat covers, or first free service — dealers may agree since they already saved due to lower GST.
Collect all legal documents showing GST rate (18%) applied on your invoice.
Real Benefit Calculation
Let’s take a simple example for better understanding:
Suppose the HF Deluxe cost ₹70,000 before GST cut.
Earlier tax rate = 28%
New tax rate = 18%
Difference in tax = 10%
So, the approximate savings on ₹70,000 would be around ₹7,000 — before adding other state-level changes. This clearly shows how GST reduction turns into real monetary benefit for buyers.
Long-Term Impact
The two-wheeler industry believes this GST reduction will increase sales of small-engine bikes. Many working-class and middle-income groups depend on affordable motorcycles for daily use.
Because fuel prices are still high, buyers look for value-for-money vehicles with high mileage. With this tax cut, brands like Hero, TVS, and Bajaj expect better demand, especially in rural and semi-urban areas.
On the other hand, bike-makers dealing in premium or imported motorcycles might see reduced demand because of the higher 40% GST slab.
According to industry experts quoted in The Economic Times, the new tax structure supports India’s goal of providing affordable mobility and cutting dependency on large, fuel-hungry vehicles.
Final Words
The 2025 GST update is a welcome move for those buying commuter bikes like Hero Splendor and HF Deluxe. Prices are now lower, which benefits millions of middle-class families. However, buyers should still check the model’s engine size, the date of billing, and the final on-road price.
To make the most of this opportunity:
Confirm your dealer has revised prices.
Compare offers between different showrooms.
Ask for all price breakdowns and avoid hidden costs.
If you follow these simple steps, you can save several thousand rupees while buying your new bike. So, before finalizing your purchase, review the new GST details carefully — doing so will help you buy smart and avoid any unnecessary loss.
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