Manufacturers are betting that improved equipment will encourage buyers to upgrade from basic commuters to higher-priced models, improving revenue per vehicle | Photo Credit: RUPAK DE CHOWDHURI

TVS Motor’s top-end Raider motorcycle, launched a year ago at ₹95,600, now lists at ₹1,03,170, nearly 8 per cent higher. This festive season, the company is advertising savings of up to ₹11,000, potentially offsetting more than a year’s price increase for eligible buyers.

The same contest is unfolding across India’s 125–250cc motorcycle market. Hero MotoCorp’s Xtreme 160R carries a listed cash bonus of up to ₹10,000, while Bajaj Auto is offering combined benefits of ₹6,000–₹8,900 on several Pulsar models. Manufacturers are using temporary incentives to protect festive demand after repeated price increases driven by rising input costs.

The discounts follow a reduction in goods and services tax on motorcycles up to 350cc from 28 per cent to 18 per cent in September 2025, which initially lowered prices by thousands of rupees. Subsequent manufacturer-led increases have partly eroded that benefit.

Two-wheeler retail sales rose 33.1 per cent to 17.90 lakh units in September 2026, according to the Federation of Automobile Dealers’ Associations (FADA), raising the stakes for manufacturers seeking to sustain momentum beyond the festive season.

Rising costs, temporary relief

Bajaj Auto indicated earlier this year that steel costs had increased about 15 per cent and copper about 20 per cent, with its April price revisions recovering only around 40 per cent of the additional burden.

TVS Motor said pricing had offset roughly a third of commodity inflation. It raised prices across much of its portfolio in August and revised Raider prices again in October by up to ₹2,600. Hero MotoCorp also implemented increases averaging around ₹2,000 per vehicle.

Against this backdrop, Bajaj has structured its festive campaign around cash discounts, processing-fee waivers and free servicing. The Pulsar 125 receives benefits worth ₹6,000, the NS125 ₹6,200 and the Pulsar 150 ₹7,200. Packages increase to ₹7,500 on the N160 and NS160, ₹7,900 on the N250, ₹8,000 on the NS200 and ₹8,900 on the RS200.

TVS’s advertised Raider savings are conditional, incorporating financing offers that vary by location and eligibility. TVS Credit is separately promoting interest rates starting at 5.99 per cent on eligible models. Hero’s smaller Xtreme 125R carries a listed bonus of up to ₹3,000, with roadside assistance offered on eligible online bookings.

The premium commuter test

The incentives accompany a broader shift towards better-equipped motorcycles. Hero’s top-spec Xtreme 125R offers dual-channel ABS, while selected TVS Raider variants feature connected displays and upgraded braking equipment. Honda’s SP125 offers RoadSync smartphone connectivity.

Manufacturers are betting that such equipment will encourage buyers to upgrade from basic commuters to higher-priced models, improving revenue per vehicle even as commodity costs squeeze margins.

For customers, however, the purchase decision increasingly turns on down payments, monthly instalments and running costs rather than showroom prices alone. That makes financing and service packages important tools for manufacturers competing in a price-sensitive market.

Several promotional offers expire on October 31, while the underlying price increases remain. Whether buyers continue upgrading once the incentives disappear will test how much of the demand for premium commuters rests on product appeal rather than temporary affordability.

Published on October 20, 2026