06 Feb 2026
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The Union Budget 2026–27 presented by Finance Minister Nirmala Sitharaman focused on stabilizing growth and boosting the automotive sector, including two-wheelers. While the Budget itself didn’t announce new direct tax cuts or price breaks for two-wheeler buyers, the continued impact of recent tax reforms and evolving GST trends have important implications for riders, buyers and the industry.
We are here to explain you what’s changing, what’s staying the same, and what it means for everyday two-wheeler shoppers in India.
Even though the 2026 Budget didn’t bring fresh tax relief for bike buyers, most of the pricing impact comes from the GST 2.0 reforms introduced in September 2025. These reforms simplified tax slabs for vehicles, and two-wheelers are right in the middle of the shift.
Under GST 2.0:
● Scooters & motorcycles up to 350 cc now attract 18 % GST, down from an effective 28%
● Larger bikes (above 350 cc) face higher tax at around 40 % GST, up from 31%
● Electric two-wheelers (EVs) continue to enjoy a concessional 5% GST
This change has already made commuter bikes and scooters more affordable and reshaped buyer preferences across India’s two-wheeler market.
For most Indian buyers, especially first-time riders and commuters, the GST cut on entry-level bikes and scooters is the big win.
Popular models from brands like Hero MotoCorp saw price reductions of ₹3,000–₹18,000, depending on the model and variant.
What this means for buyers:
● Lower upfront cost: A typical commuter bike or scooter is now noticeably cheaper, making owning a two-wheeler easier for students, daily commuters, and rural buyers.
● Improved affordability: With inflationary pressures easing on many vehicle segments, a lower GST helps keep financing and insurance costs more manageable.
As a trusted platform in the two-wheeler ecosystem, Wheels of Trust closely tracks these changes to help buyers decide when and how to engage in the exchange bike or scooter process.
Though the Budget didn’t introduce new EV rebates for two-wheelers, electric models still benefit from a low 5 % GST. That’s a big advantage versus petrol bikes, especially for city commuters interested in eco-friendly options.
Why it matters:
● Lower tax rates lower upfront cost for electric scooters and bikes
● As charging infrastructure expands, supported indirectly by broader auto policy incentives, EVs will become even more competitive in total cost of ownership
For budget-conscious buyers weighing electric versus petrol options, Wheels of Trust offers insights on cost comparisons, ownership costs, and resale value trends, helping you make smarter decisions.
The 2026 Budget reinforced continuity for the automotive sector. Analysts and industry leaders have welcomed the stability and clarity, even though there were no direct new price breaks for two-wheelers.
Key takeaways:
● Pricing relief in two-wheelers mainly stems from GST reforms already in place, not the 2026 Budget itself.
● No fresh tax cuts or cess waivers were introduced specifically for two-wheelers in the latest Budget.
The government signaled continued support for green mobility and manufacturing, which may benefit EV bike makers indirectly in the long term.
If you’re considering buying a two-wheeler now, here’s how to think about your options:
● Commuter bikes and scooters ( ≤350 cc): Take advantage of the lower GST and look for competitive financing deals.
● Premium bikes ( >350 cc): Expect a bit higher costs and check for seasonal offers or consider certified pre-owned options.
● Electric scooters: Lower GST helps, but also compare charging costs and incentives in your city or state.
Wheels of Trust helps you move forward with ease by letting you exchange your current two-wheeler for a new Hero MotoCorp motorcycle or scooter. With a market-friendly bike exchange offer online and a range of advanced, powerful models, your new ride will surely deliver true value for money.
In essence, India’s 2026 Budget did not directly cut prices for two-wheelers, but it reinforced the tax structure created by GST 2.0 that already lowered costs for many models. Smarter decisions, backed by reliable insights and trustworthy platforms can help everyday buyers maximize value in this evolving market.
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