GST cut will make Yezdi, Jawa bikes more affordable: Co-founder
What's the story
Classic Legends, the company behind iconic motorcycle brands Yezdi and Jawa, has welcomed the recent Goods and Services Tax (GST) reforms. The company's MD and co-founder, Anupam Thareja, said these changes will make their bikes more affordable and appealing. He said the new 18% GST rate on two-wheelers up to 350cc will bring down prices of models under ₹2 lakh.
Market impact
350cc segment to be fastest-growing post-GST cut
Thareja said the GST reforms will help Yezdi and Jawa regain their market presence after a long hiatus. He added that the 350cc segment is set to be one of the fastest-growing in India's two-wheeler industry post-GST cut. The company's models currently range from ₹1.72 lakh to ₹2.35 lakh, but with the new tax structure, they expect prices to fall below ₹2 lakh for most of their offerings.
Brand impact
Thareja happy with government's decision on 650cc motorcycles
The increased special rate of 40% on motorcycles over 350cc, including cess, will affect Classic Legends' other motorcycle brand, BSA. However, Thareja said he is happy with the government's decision as it follows the principle of 'progressive taxation.' He said, "As an Indian, I am happy and I'm humbly accepting that even though I lose out on 650cc, you (the government) gave enough for 350cc for me."
Regulatory impact
1995 regulation made sure that Yezdi and Jawa fade away
Thareja recalled how a policy change in 1995 led to the demise of Yezdi and Jawa. He said, "The 1995 regulation made sure that Yezdi and Jawa fade away, and this 2025 regulation has ensured that we will shine like nobody else." He also noted that both their main engine platforms fall under the new GST structure's benefit category.
Production plans
Classic Legends is doubling its capacities to meet demand surge
Thareja also said that the company is preparing to meet the expected surge in demand after the GST reforms. "We are doubling our capacities. We are really ramping up... because the Yezdi Roadster became such a hit that we were anyway increasing capacity," he said. The company's BSA bikes currently cost ₹3.09 lakh and ₹3.45 lakh, which Thareja says could appeal to "the purist or the elitist" riders who wouldn't mind paying for the brand.