Dream Ride Now Dearer? GST 2.0 May Hike Prices For Premium Bikes By Up To Rs 45,000

For many looking to make the big buy of their dream bikes, a potential GST hike is making the bill heftier for some models. While initial assumptions suggested a reasonable 10% to 15% price increase, a detailed breakdown of the numbers reveals a far more notable financial blow.

The current tax structure for bikes above 350cc is set to be revised, and the resulting on-road price could climb by up to 30% or more, adding thousands more to the final bill. The main reason for this drastic jump lies in how the increase in tax is compounded. What seems like a simple hike in the tax rate, from an approximate total of 31% to a potential 43%.

This multiplies the base cost, which in turn inflates the values for RTO road tax and insurance, which are calculated based on the bike's price. According to Team BHP.com, this ripple effect is what leads to the higher final prices pulling prices up by Rs 20,000 to Rs 45,000.

The analysis by Team BHP shows that bikes across brands are facing significant price hikes. For instance, a popular model like the Royal Enfield Interceptor 650, which currently has an on-road price of Rs 3.80 lakh, could see its price climb to over Rs 4.13 lakh, which marks an increase of 34%.

Similarly, the KTM 390 Duke, an on-road price of Rs 3.60 lakh now, could get Rs 3.91 lakh more expensive, bringing a 32% increase. The increases are not uniform but hover consistently around the 30% mark for most models. The table clearly highlights how the GST tweak disproportionately affects the premium segment.

While smaller bikes may see some price relief, the aspirational market of big and premium bikes is set for a significant price escalation. This potential change means that for those saving up for a new dream ride, the journey to the showroom just got a lot more dearer.