GST updates, festive deals, and fresh launches: What to expect for bike prices this Diwali
Diwali, the festival of lights, isn’t just about crackers and sweets—it’s one of the biggest buying seasons in India, especially in the automobile sector. If you are wondering whether bike prices will drop during the Diwali 2025 season, here are some important insights and accurate factors to consider.
This year, one of the most significant potential changes affecting bike prices is the anticipated reduction in Goods and Services Tax (GST). The government is planning to simplify the GST structure by Diwali, which could drop the current GST rate on two-wheelers from 28–31% down to 18%. This move aims to make two-wheelers more affordable for the masses and is supported by both industry players and economists. If implemented, this could result in a noticeable reduction in bike prices during the festive period, especially benefitting buyers of larger engine models.
Diwali is traditionally a time when dealers and manufacturers offer exclusive festive discounts, including cashbacks, free accessories, special festive insurance deals, and more. These promotions are designed to clear out existing stock and attract buyers. Offers such as reduced prices on unsold inventory, special loan schemes (including zero down payment, reduced interest rates, and flexible repayment), and complementary insurance packages are likely to be popular this Diwali.
Manufacturers often launch new bike models or upgraded versions during Diwali, knowing that consumer sentiment is high. For 2025, several new models are expected, ranging from budget-friendly electric scooters to premium motorcycles. Upcoming launches usually lead to price competition, with older models available at discounted rates and introductory offers on new variants.
Diwali is considered an auspicious time for purchases in India, leading to a surge in demand. Dealers anticipate this and therefore are more likely to release attractive offers to maintain high sales volumes. Many people specifically wait for Diwali to make vehicle purchases, and companies respond with promotions and stock clearance strategies.
Bike prices are likely to see a downward trend during Diwali 2025 due to the combination of a probable GST reduction, multiple festive offers, new model launches, and year-end stock clearance sales. While some factors like production costs can still influence the final price, Diwali historically presents the best opportunity for buyers seeking value, discounted rates, and attractive financing schemes.
Expected GST Cut on Two-Wheelers: Government Policy Changes
| Two-Wheeler Category | Current GST Rate | Expected GST Rate (Upcoming Revamp) |
| Up to 350cc engine | 28% | 18% |
| Above 350cc engine | 31% (28% GST + 3% cess) | 18% (cess removal anticipated but not yet confirmed) |
This year, one of the most significant potential changes affecting bike prices is the anticipated reduction in Goods and Services Tax (GST). The government is planning to simplify the GST structure by Diwali, which could drop the current GST rate on two-wheelers from 28–31% down to 18%. This move aims to make two-wheelers more affordable for the masses and is supported by both industry players and economists. If implemented, this could result in a noticeable reduction in bike prices during the festive period, especially benefitting buyers of larger engine models.
Festive Discounts and Year-End Offers
Diwali is traditionally a time when dealers and manufacturers offer exclusive festive discounts, including cashbacks, free accessories, special festive insurance deals, and more. These promotions are designed to clear out existing stock and attract buyers. Offers such as reduced prices on unsold inventory, special loan schemes (including zero down payment, reduced interest rates, and flexible repayment), and complementary insurance packages are likely to be popular this Diwali.
New Model Launches
Manufacturers often launch new bike models or upgraded versions during Diwali, knowing that consumer sentiment is high. For 2025, several new models are expected, ranging from budget-friendly electric scooters to premium motorcycles. Upcoming launches usually lead to price competition, with older models available at discounted rates and introductory offers on new variants.
High Demand and Auspicious Timing
Diwali is considered an auspicious time for purchases in India, leading to a surge in demand. Dealers anticipate this and therefore are more likely to release attractive offers to maintain high sales volumes. Many people specifically wait for Diwali to make vehicle purchases, and companies respond with promotions and stock clearance strategies.
Bike prices are likely to see a downward trend during Diwali 2025 due to the combination of a probable GST reduction, multiple festive offers, new model launches, and year-end stock clearance sales. While some factors like production costs can still influence the final price, Diwali historically presents the best opportunity for buyers seeking value, discounted rates, and attractive financing schemes.
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