Not only EVS: Quietly reset GST changes the game for bicycles, buses and your next car

It is scheduled to reduce domestic prices in India, the GST tax system (GST) is scheduled to reduce, reduce categories reduction rates across vehicle categories, increase domestic demand, and reshape the auto sector – to a new report from Crisil Intelligence.

Crisil Intelligence said in the last fragmented tax note, that the three-level GST structure, 5 %, 18 %, and 40 %-carry a fragmented tax system, and can serve as a major motor incentive in India.

Electric cars (EVS) remain a 5 % tax, but the ICE (ICE) engine and hybrid slides that will witness the most urgent change. Crisil notes that the prices of passenger vehicles for beginners such as Maruti Suzuki Wagon R, Swift, DZIRI and Tata Punch-are subject to a tax of up to 31 %-now under the commodity and services tax by 18 %, leading to a reduction of an up to 8.5 %.

SUVs will become medium -sized like Maruti Brezza, Hyundai Creta, about 3.5 % cheaper, while distinguished SUVs like Maahindra Xuv700 and Toyota Innova will witness a decrease in prices by 6.7 %.

The two wheels will attract under 350 cc, which constitute the largest part of the motorcycle market in India, now by only 18 % of the commodity and services tax, which leads to a decrease in prices by approximately 7.8 %. However, the commodity and services tax for excellent bikes increased more than 350 cc to 40 %, which increased prices by approximately 7 %.

Commercial and rural mobility sectors also benefit. Tractors and hydrogen fuel cell compounds turn into a 5 % plate, with a decrease of 12 %. Taxes are now imposed on three wheels, buses and light to heavy commercial vehicles by 18 %, compared to the previous 28 %, which greatly reduces ownership and operation costs.

According to Crisil Intelligence, after -sales will get gains, as taxes are now imposed on a uniform in 18 %, a decrease from 28 % for many elements – as it reaches 7.8 %.

Looking at the 2026 financial match, CRISIL records a single-wheel-sales growth, modest gains for passenger vehicles, and continued momentum of tractors with 4-7 % growth. Commercial vehicle sales are expected to remain flat on a marginal way.

The logistical services industry also sees cost reduction. The commodity tax and services on multimedia logistics decrease to 5 %, and external sides’ insurance on commodity carriers decreases to 5 %. While the largest fleet operators may face credit problems in the short term, CRISIL expects the structural effect to be positive.

“This is a strategic time step to revive consumption, especially in the rural and sensitive sectors of the price,” said Himal Thakar, director of Crisil Intelligence Company.