The Hero Splendor—India’s most popular commuter motorcycle—has always been known for reliability, affordability, and ease of ownership. Now, in October 2025, it’s making headlines again for a different reason: the latest GST rate revisions may have effectively reduced the total cost of ownership for millions of buyers.
As part of India’s broader tax rationalization initiative, the government revised GST slabs for small-capacity motorcycles and two-wheelers, including the Splendor range. These updates are aimed at boosting affordability and encouraging rural and urban buyers to shift toward more fuel-efficient and cleaner mobility options. Let’s break down how this affects the Hero Splendor lineup’s actual on-road pricing and what buyers can expect after the new tax adjustment.
GST Revision for Two-Wheelers in 2025
In early 2025, the GST Council approved a 2% reduction in the tax rate on two-wheelers under 150 cc engine capacity, bringing the effective GST from 28% down to 26%. While the difference may look small, the cumulative effect on ex-showroom pricing and on-road cost is notable when combined with reduced registration and insurance adjustments.
The revised GST now applies to all commuter-class motorcycles such as:
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Hero Splendor Plus (97.2 cc)
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Hero Splendor iSmart (110 cc)
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Hero Super Splendor (125 cc)
This update excludes high-performance motorcycles above 150 cc, meaning the entire Splendor lineup directly benefits from the reduced tax structure.
How Much Cheaper Is the Hero Splendor Now?
Let’s take a simple price example to understand the difference after the GST cut.
Variant | Old Ex-Showroom Price (GST 28%) | New Ex-Showroom Price (GST 26%) | Approx. Savings |
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Splendor Plus (Drum) | ₹78,000 | ₹76,500 | ₹1,500 |
Splendor iSmart (Drum) | ₹84,500 | ₹82,700 | ₹1,800 |
Super Splendor (Disc) | ₹92,000 | ₹89,600 | ₹2,400 |
Depending on the state’s road-tax rates, insurance cost, and handling fees, the total on-road price can drop by ₹2,000 – ₹3,000 per model. That might not sound huge, but for mass-market buyers in tier-2 and rural markets, every rupee saved matters—and Hero’s volumes rely heavily on these regions.
On-Road Price Impact (Post-GST)
Let’s calculate approximate on-road pricing in key Indian cities after the new GST implementation.
City | Splendor Plus (On-Road) | iSmart (On-Road) | Super Splendor (On-Road) |
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Delhi | ₹87,200 | ₹93,800 | ₹1,01,500 |
Mumbai | ₹88,500 | ₹95,200 | ₹1,03,000 |
Bengaluru | ₹89,000 | ₹95,900 | ₹1,04,200 |
Jaipur | ₹86,800 | ₹92,700 | ₹1,00,300 |
On average, the effective drop in on-road cost ranges between 2–3%, depending on registration fees and RTO jurisdiction.
Why the GST Cut Matters for Hero
Hero MotoCorp, being India’s largest two-wheeler manufacturer, benefits directly from any tax relief in the commuter segment. The company had already seen pressure from rising input costs and a slowing rural market through 2024. The GST reduction serves as both an economic relief for consumers and a volume booster for Hero.
Strategic benefits for Hero Splendor:
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Better affordability in price-sensitive states like Uttar Pradesh, Bihar, and Rajasthan
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Potential increase in monthly sales volumes by 5–7%
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Enhanced competitiveness against TVS Sport, Honda Shine 100, and Bajaj CT 110
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Encouragement for first-time buyers upgrading from 100 cc bikes
Additionally, Hero dealerships report higher booking interest since the announcement, with customers waiting for updated invoice structures to reflect the GST cut.
Features & Value Proposition Remain Unchanged
While prices have dropped, the 2025 Hero Splendor models continue to offer the same performance, design, and reliability package.
Key features across the Splendor range include:
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97.2 cc / 110 cc / 125 cc BS6.4 engines
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i3S (Idle Start Stop System) for improved mileage
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60 – 70 km/l real-world fuel efficiency
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Alloy wheels with tubeless tires
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Side-stand engine cut-off and CBS braking system
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Digital-analog instrument cluster
The Splendor remains India’s most fuel-efficient commuter bike, offering unbeatable value even before the tax cut. With the GST advantage added, its total cost of ownership becomes even more attractive.
Broader Economic Context
This GST reduction is part of the Union Government’s “Affordable Mobility Plan 2025”, aimed at revitalizing domestic demand for smaller vehicles. The policy focuses on low-maintenance, fuel-efficient two-wheelers that support middle-class and rural income groups.
In India, motorcycles below 150 cc account for nearly 70% of the total two-wheeler market. A small GST revision in this bracket can influence millions of potential buyers, giving companies like Hero MotoCorp an immediate sales edge.
For Hero, this policy aligns perfectly with its expanding green mobility roadmap—from the classic petrol Splendor to the upcoming Hero Splendor Electric, ensuring consistent dominance across both ICE and EV markets.
Expected Market Outlook After GST Cut
Industry experts expect Hero MotoCorp’s Splendor family sales to surge during the October–December 2025 quarter, coinciding with the festive buying season. Dealers across India have reported higher inquiries since the GST change, particularly in smaller towns.
Analysts predict:
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Up to 8–10% rise in rural bookings for the Splendor Plus
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Higher preference for disc-brake variants due to smaller price gap
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Extended waiting periods in northern and western states
With stable fuel prices and reduced taxes, the Splendor’s position as India’s “go-to commuter” remains unchallenged.
Why the Splendor Still Rules 2025
Even after three decades, the Splendor continues to dominate because it delivers what Indian commuters truly value — reliability, mileage, and low running cost. The new GST benefit simply strengthens that equation.
Top reasons why Hero Splendor stays unbeatable in 2025:
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Proven durability and wide service network
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Outstanding resale value
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Refined and fuel-efficient BS6.4 engine
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Affordable maintenance cost (₹400 – ₹600 per service)
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Now even cheaper post-GST revision
For anyone planning to buy a budget commuter this year, the timing couldn’t be better. Hero Splendor buyers will now enjoy additional savings along with Hero’s proven dependability.
FAQs
What is the new GST rate for the Hero Splendor in 2025?
The GST on motorcycles under 150 cc, including the Splendor, has been reduced from 28% to 26% effective October 2025.
How much cheaper is the Hero Splendor now?
Depending on the variant and location, the Splendor is now ₹1,500 – ₹3,000 cheaper on-road compared to pre-GST prices.
Does the GST cut affect the electric version too?
Yes. Hero Splendor Electric 2025 also benefits indirectly as EV tax credits and exemptions remain unchanged, further narrowing the price gap with petrol bikes.
Which variant offers the best mileage?
The Splendor Plus i3S variant continues to deliver the best real-world mileage, around 70 km/l under ideal conditions.
Should I buy now or wait for further cuts?
With the festive offers and the new GST revision in place, now is the ideal time to buy. Additional tax cuts are not anticipated this fiscal year.
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