GST Revision Impact On Motorcycles: Price Cuts for Jawa and Yezdi, Price Hike for BSA Gold Star

The government’s recent GST overhaul could reshape the fortunes of Classic Legends’ motorcycle portfolio. With tax on bikes up to 350cc slashed from 28 percent to 18 percent, Jawa and Yezdi models now become more affordable as the company promises to pass “100% of the GST benefit to our customers. Coinciding with the festive season, we are telling young Indians who aspire to own a true iconic performance motorcycle,” according to Anupam Thareja, MD & Co-founder, Classic Legends. At the same time, the BSA Gold Star 652cc moves into a higher 40 percent slab, creating a fresh challenge for the company’s premium offering.

Jawa and Yezdi Benefit Most

Classic Legends’ core lineup, the Jawa 350, Jawa 42, and the Yezdi range comprising the Roadster, Scrambler and Adventure, all fall below the 350cc threshold. Customers can expect price reductions in the range of Rs 15,000–20,000 depending on the model and variant.

This puts the Jawa 350 in an even stronger position against the Royal Enfield Classic 350, its biggest rival in the retro segment. Similarly, the Yezdi Adventure, now priced more competitively, strengthens its hand against the Royal Enfield Himalayan 450 in the adventure category. The cut comes at the right time, ahead of the festive season when nearly 40 percent of annual two-wheeler sales usually take place.

Pressure on the BSA Gold Star

The BSA Gold Star, with its 652cc single-cylinder engine, faces the opposite outcome. Its earlier effective tax of around 31 percent (28 percent GST plus 3 percent cess) has been replaced by a flat 40 percent levy. This will push up its sticker price, putting it under pressure in a market where Royal Enfield’s 650cc twins and KTM’s higher-capacity bikes already hold strong ground.

Classic Legends had positioned the Gold Star as a halo product for both India and export markets. The new GST structure makes it harder to maintain that balance domestically, even though it may still find buyers abroad where Indian tax slabs do not apply.

Building on a Revival Strategy

Since relaunching Jawa in 2018, Classic Legends has focused on reviving heritage-rich brands with modern engineering. The company operates out of Pithampur, Madhya Pradesh, on the former Mahindra two-wheeler site, giving it scale to meet fresh demand.

Founder Anupam Thareja has long argued that the mid-displacement motorcycle segment offers the biggest long-term opportunity in India. With 98 percent of domestic two-wheeler sales falling below 350cc, the GST cut directly strengthens Classic Legends’ chosen market space. The alignment between company strategy and tax incentives gives it a clear edge at a critical stage of its growth.

Competitive Landscape Shifts

Lower Jawa and Yezdi prices sharpen the fight in the retro and adventure spaces. The Jawa 42 and Yezdi Roadster now appear better value for riders comparing them with Royal Enfield’s Classic and Meteor line-ups. For the Yezdi Scrambler and Adventure, the advantage lies in offering fresh styling and features at prices made even more attractive by the tax cut.

Classic Legends has kept the brand identities distinct: Jawa appeals to heritage-focused buyers, Yezdi caters to adventure-oriented riders, and BSA carries premium British legacy. This segmentation allows the company to target different groups without overlap, while ensuring GST benefits are channelled where demand is strongest.

Finances and Future Plans

The company’s capital position, with over Rs 800 crore available, gives it flexibility to scale production as volumes rise. Plans for a public listing within the next year or two underline its confidence in long-term growth. Lower taxation also simplifies financial management by removing the earlier mix of GST plus variable cesses, making pricing clearer for both dealers and customers.

Classic Legends is also working on four new models across Jawa, Yezdi and BSA. These will include fresh mid-capacity offerings as well as a scrambler variant on the BSA 650 platform. While the larger bikes will face the 40 percent GST bracket, the volume focus remains on the sub-350cc range that now enjoys a clear cost advantage.

What It Actually Means

For customers, the impact is straightforward. Jawa and Yezdi models are now cheaper by up to Rs 20,000, making them more accessible in an already price-sensitive market. For BSA enthusiasts, the Gold Star will get more expensive, but it will continue to serve as a niche product for premium buyers.

The festive season timing means dealers are likely to see increased showroom footfall as buyers move quickly to take advantage of lower prices. With nearly 300 cities already covered by its dealer network, Classic Legends is positioned to capture this demand surge.