Honda’s entire two-wheeler lineup in India has become more affordable following the recent revision in Goods and Services Tax (GST) rates.
The GST Council reduced the tax slab on motorcycles and scooters with engine capacities of up to 350cc from 28 percent to 18 percent, resulting in substantial price cuts across Honda’s popular products. The reduction, which came into effect on September 22, has led to savings ranging from a few thousand rupees to as much as ₹18,887, depending on the model.
Honda’s best-selling scooter, the Activa, has emerged as one of the biggest beneficiaries of this revision. The Activa 110, previously priced at ₹81,045, is now available at ₹68,109, marking a reduction of ₹12,936. Other scooters, including the Activa 125, Dio, Grazia and Aviator, have also recorded notable price drops. The Aviator, in particular, has seen the steepest cut of ₹18,887, making it significantly more attractive to customers in the premium scooter space.
The benefits are not restricted to scooters alone. Honda’s motorcycles too have been brought under the lower GST slab, making popular commuter bikes such as the Shine, SP 125, SP 160 and Unicorn more affordable. Premium offerings like the H’ness CB350 also fall under the new slab, with buyers saving over ₹20,000 on certain variants. The revision is expected to provide a strong boost to Honda’s sales volumes in the months ahead, especially in the mass-market commuter segment where affordability plays a critical role in purchase decisions.
The model-wise comparison of old and new prices is provided below:
Model
Old Price (₹)
New Price (₹)
Price Cut (₹)
Honda Activa 110
81,045
68,109
12,936
Honda Activa 125
74,890
67,210
7,680
Honda Dio
68,500
61,200
7,300
Honda Grazia
83,500
74,613
8,887
Honda Aviator
91,000
72,113
18,887
Honda Shine
80,000*
72,000*
8,000*
Honda SP 125
90,000*
81,000*
9,000*
Honda SP 160
1,18,000*
1,06,000*
12,000*
Honda Unicorn
1,20,000*
1,08,000*
12,000*
Honda H’ness CB350
2,10,000*
1,89,000*
21,000*
(*approximate values, varying by variant and state)
A senior Honda Motorcycle & Scooter India official welcomed the government’s move, saying, “The GST rate cut is a timely and progressive step that will directly benefit millions of two-wheeler customers across India. Affordability plays a decisive role in the commuter segment, and this reduction allows us to offer our products at more competitive prices. We believe this will drive stronger demand ahead of the festive season and further strengthen the two-wheeler industry’s growth trajectory.”
Industry experts echoed the sentiment, highlighting that the tax cut will not only stimulate fresh demand but also encourage many existing users to upgrade to newer models. With Honda’s wide product range covering both scooters and motorcycles under 350cc, the brand is positioned to be one of the biggest gainers from this revision.
The GST rate hike for motorcycles above 350cc, which now attract 40 percent tax, may slow down demand for larger displacement models from brands like Royal Enfield, KTM, and Triumph. In contrast, Honda’s decision to focus primarily on the sub-350cc category appears well-timed, as it will allow the company to maximise the benefits of the tax cut and consolidate its leadership in scooters while strengthening its position in commuter and premium commuter motorcycles.
Honda’s refreshed pricing across scooters and motorcycles is not only a win for consumers but also for the brand itself, as it prepares to compete more aggressively against rivals in a rapidly evolving two-wheeler market.
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