Motorbikes Between 250cc-400cc/200cc-250cc To Receive A Price Cut In Budget 2023/2024

The Budget Announcement

The Nepalese government announced a decrease in the excise duty for motorbikes in the 200cc-250cc category in the Budget 2023/24, in a significant step aimed at improving the automobile sector and increasing two-wheeler sales. As the new provision states, the government has reduced the excise duty from 80% to 60%. 

The new provision doesn’t just end with decreasing the excise duty on motorbikes between 200cc-250cc alone; it also reduces the excise duty on motorbikes between 250cc-400cc as well. 

Before this much-needed provision was imposed, the excise duty on this segment, i.e., 250cc-400cc was up to 90%, but now it will be reduced to only 70%. And also, for motorbikes that get assembled in Nepal, the excise duty has been settled at 30%. Likewise, the road construction fee has been reduced from Rs. 50,00 to Rs. 20,000. This move will help motorcycle lovers and commuters who have been interested in this popular segment. The decision is consistent with the government's overarching objective of supporting the automotive sector and making motorbikes more affordable to the general public.

In its budget for the fiscal year 2023/24, the Government of Nepal has taken an important step toward developing the motorbike sector by lowering the costs of motorbikes in the 250cc-400cc /200cc-250cc range. The goal of this change is to make these motorcycles more accessible and affordable for a wider variety of users. By lowering the financial burden on prospective purchasers, the government intends to increase sales, stimulate the economy, and generate job opportunities in the vehicle industry.

Impact on Consumers

The price reduction for motorbikes in the 200cc-400cc range is likely to benefit customers. With lower pricing, prospective purchasers will be able to afford and access motorcycles with higher levels of performance and features. This decision will mostly help middle-class individuals and young professionals looking for motorbikes for everyday commuting or leisure purposes.

Furthermore, this move will encourage prospective purchasers to choose safer and more dependable bikes in the defined sector. As a result, as people upgrade from older, less-safe motorcycles to newer ones equipped with enhanced safety measures, road safety may increase.  Customers who are looking to purchase Royal Enfield, Jawa, Yezdi, KTM, BMW, Crossfire, Benelli, and Honda will largely benefit from this new provision that the government of Nepal has set in motion.

The Government of Nepal's decision in Budget 2023/24 to cut the pricing of motorbikes in the 200cc-400cc category is a positive move toward strengthening the car sector and making motorcycles more affordable for the public. This action will boost economic growth, provide job opportunities, and improve road safety.

Budget Impact

The impacts of the recent tax cut for motorcycles between 200cc-400cc have made massive headway. This has affected the prices of many well-known and sought-after brands such as Bajaj Dominar, Royal Enfield, Crossfire, and more. 

With the new provision, the price of the BS6 Bajaj Dominar 400 has been reduced by Rs 60,000. The Dominar 400, which was formerly priced at Rs 6,59,900, will now be available for Rs 5,99,900 from June 1, 2023.

Similarly, Classic Wheels Import and Export has also announced the revised pricing of the Crossfire RM250, HJ250, and Tracker 250 models. As per the recently announced tax cut by the government for motorbikes between 200-400cc, there has been a price cut between Rs. 40,000- Rs. 71,000 on the aforementioned models. The Crossfire RM250 will now be priced at Rs 8,43,000, whereas before the reduction in tax, it was priced at Rs 8,88,000. Likewise, the Crossfire HJ250 will be available for Rs 6,99,000, as it was priced at Rs 7,70,000 before the tax reduction. This model has seen a major price reduction of Rs. 71,000. The Crossfire Tracker 250 also gets a revised price of Rs 3,70,000 from the previous Rs 4,10,000.

The Royal Enfield series is also affected by the current tax reduction. The Royal Enfield Classic 350 Single Channel ABS price has also been changed. Before, the motorbike used to be priced at Rs. 6,45,000, and now, after the tax reduction, it's available for Rs. 4,99,000. Similarly, another model affected in the lineup is the Royal Enfield Scram 411, which was priced at Rs. 9.50 - 10.50 lakhs before the price cut. Now, the same model is available for Rs. 6,60,000. 

With this tax reduction, the newly launched TVS Ronin will also have its price affected, as it is expected to be available for 4-4.5.