The Indian motorcycle and scooter market has gone through a period of significant change, driven largely by revisions in GST rates and shifting manufacturer strategies. At the same time, the year witnessed notable launches, brand revivals, and technical advancements, alongside missed opportunities and cancellations. Here’s a look at the biggest ups and downs of 2025.
The Ups
GST For Bikes Below 350cc Reduced
The Indian government has slashed GST on two wheelers up to 350cc from 28 percent to 18 percent, effectively reducing ex-showroom prices by a significant amount. While motorcycles above 350cc now attract a higher levy, it’s the sub-350cc segment models that make up the majority of two-wheeler sales in India that have benefited the most. The result can be seen in how overall two wheeler sales in India have crossed the 20 million sales mark for the first time since 2019.
Kawasaki KLX230 Localised
Launched late in 2024 at Rs 3.30 lakh, the KLX230 was an expensive proposition. Localisation of the product and the new GST rates have helped slash the price by nearly half. The bike now costs Rs 1.84 lakh (ex-showroom), and gets some changes when compared to the import model. This makes it Rs 1.46 lakh more affordable than its original launch price and opens it up to a wider section of the market.
Norton Comes Back To Life
Norton Motorcycles, which was acquired by TVS in 2020, revealed four of its upcoming motorcycles at EICMA 2025. All of these models have been developed from the ground up. The Manx and Manx R feature a 1200cc, V4 engine, while the Atlas and Atlas GT adventure bikes get a 585cc, twin-cylinder engine. The 1200cc, V4 models will be assembled at the company’s facility in Solihull, UK, but will have significant component supply from India. Meanwhile, the Atlas and Atlas GT will be manufactured in India at the TVS plant in Hosur, Tamil Nadu. Expect to see these bikes go on sale in India through a premium dedicated dealer network in the first half of 2026.
Yamaha XSR 155 Finally Launched In India
The long awaited Yamaha XSR 155 was finally launched in our market. It gets neo-retro styling while sharing its engine and chassis with the popular R15 and MT-15. The bike was launched for a very competitive introductory price of Rs 1.50 lakh (ex-showroom), making it Rs 5,000 more affordable than the base variant of the MT-15.
Kinetic DX Revived
Alongside the Nortons, 2025 saw the revival of another iconic name, at least for us in India when Kinetic brought its iconic DX nameplate back in a new electric avatar. The DX is a modern-day EV tribute to the original Kinetic Honda DX, which became a household name in the late ’80s and early ’90s. Prices for the DX start at Rs 1.11 lakh (ex-showroom, Pune) and go up to Rs 1.17 lakh for the DX+ variant although deliveries have not yet begun and we are yet to test this scooter.
Tubeless Spoked Wheels Start Going Mainstream
Many Indian-made bikes have started to be offered with tubeless spoked wheels, something that was a rarity at this price point. Royal Enfield and Bajaj have been leading the charge and models that were launched this year with tubeless spoked wheels include the RE Himalayan 450, Meteor 350, Goan Classic 350, Triumph Scrambler 400 XC, and the KTM 390 Adventure. One of the main advantages of tubeless spoked wheels is that they make fixing punctures a hassle free experience.
The Downs
GST increased for bikes above 350cc
While the tax slab was reduced from 28 percent to 18 percent for bikes under 350cc, it has increased to 40 percent for bikes over 350cc. With the new tax structure, the prices have risen sharply not only for imported bikes but also premium locally manufactured offerings. This will force manufacturers to rethink their premium bike strategies and could also have an impact on their long term business potential in overseas markets.
CFMoto Missing In Action
CFMoto was all set to enter the Indian market in the middle of 2025 and the company even invited us to Portugal to ride its 700 MT and 675SR-R models, following which we got to ride the 450 MT in India. The 450 was supposed to be the first model that went on sale in our market, but that never happened. While E20 compliance was quoted as the reason behind the delay, such a long period of silence does raise the question of whether the company is re-evaluating its strategy for entering the Indian market.
Triumph and KTMs will downsize in the future.
As explained in the earlier point on the new GST structure, manufacturers have been forced to re-evaluate their premium bike strategies. For Bajaj, it has proven worthwhile to downsize all their 350cc plus single-cylinder engines to come under the lower GST slab. So far, the company has been absorbing the hit from the hike in GST rates for most of the 350cc plus bikes made in Chakan, but has bigger plans in the works. All of the KTM, Triumph and Bajaj models that use the 373cc or 399cc single cylinder engine will be downsized to 350cc and this treatment is likely to be complete within the first half of 2026.
MotoGP Cancelled Again
After the cancellation of MotoGP 2024, the event was due to be held at the start of 2025, but that was also postponed and the return has now been delayed to 2026. Organisers remain tight-lipped about the reasons for the latest delay. However, reports suggested that local authorities were unable to secure the required financial support in time. MotoGP made its debut in India in 2023, and while there were some operational issues and extreme temperatures, the Buddh International Circuit itself was well received by the riders. The race was part of the initial 2024 calendar, but was later cancelled and pushed to March 2025 due to weather concerns.
