GST Reforms Pave the Way for Jawa and Yezdi’s Resurgence in India

The recent GST reforms have revitalized iconic motorcycle brands Jawa and Yezdi by reducing the tax rate on two-wheelers up to 350 cc from 28% to 18%. This move allows Classic Legends to price these bikes below ₹2 lakh, making them more accessible. While the higher tax on motorcycles above 350 cc impacts BSA, the reforms focus on benefiting the common man. Classic Legends is ramping up production to meet rising demand.

The iconic motorcycle brands Jawa and Yezdi, once household names in India, are poised for a remarkable comeback, thanks to recent GST reforms. The new tax structure is set to breathe fresh life into these legendary marques, ensuring they "shine like nobody else," as noted by Anupam Thareja and Boman Irani, co-founders of Classic Legends, the company that now owns these brands.

A Game-Changing GST Cut for Two-Wheelers

Under the revised GST framework, the tax rate on two-wheelers with engine capacities up to 350 cc has been reduced from 28% to 18%. This significant tax cut will allow Classic Legends to lower the prices of Jawa and Yezdi motorcycles, which currently range between ₹1.72 lakh and ₹2.35 lakh, to below ₹2 lakh. The company has committed to passing on the full benefits of this tax reduction to customers.

Commenting on the development, Thareja highlighted the potential of the 350 cc segment, calling it one of the fastest-growing in India's motorcycle market. He added, “Suddenly we are all below ₹2 lakh... We will have Jawas and Yezdis available below ₹2 lakh.” This shift is expected to make these bikes more accessible to a broader audience, reviving their popularity.

A Nod to the Past: The 1995 Regulation and Its Impact

Reflecting on the history of these brands, Thareja noted how a 1995 regulation mandating the transition from two-stroke to four-stroke engines led to the discontinuation of Jawa and Yezdi production by 1996. In contrast, the 2025 GST reforms have provided a fresh opportunity for these brands to thrive. “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 said.

The timing of the GST reduction has also been fortuitous for Classic Legends. The company’s two primary engine platforms—300 cc and 349 cc—fall within the category that benefits from the tax cut. Thareja humorously remarked that the GST cut had effectively relaunched their Yezdi Roadster, reducing its price from ₹2.09 lakh to ₹1.9 lakh.

Challenges for BSA Amid Progressive Taxation

While Jawa and Yezdi are set to benefit from the GST revisions, the company’s other motorcycle brand, BSA, faces challenges. The tax rate for motorcycles with engines above 350 cc has been increased to 40% from the previous 31% (including cess). This change will make BSA bikes, priced between ₹3.09 lakh and ₹3.45 lakh, more expensive. Thareja acknowledged that this move aligns with the principle of progressive taxation, where those who can afford to pay more do so to support the welfare of the less privileged.

Despite the setback for BSA, Thareja expressed pride in the government’s approach, emphasizing its focus on benefiting the common man. “While I get hurt and I feel bad, I also feel very proud as an Indian that yes, it is okay. I am a part of that progressive taxation system,” he said.

A Boost for the Common Man and the Economy

The GST reforms reflect the government’s intent to positively impact the wallets of the average Indian. Irani praised the move, stating, “The way they rationalised GST is actually to affect positively the pockets of the common man... Their focus is quite clear that they want to definitely make the common man, or the man who needs the support, get the support at this point of time.”

Thareja echoed these sentiments, adding that the GST reduction is more than just a symbolic gesture. “It is actually a significant cut, not only in rationalisation, but also in process,” he said. He also pointed out that the timing of the announcement, just ahead of the festive season, will likely spur demand, which had been subdued due to heavy rains and economic uncertainties.

Preparing for a Surge in Demand

To meet the anticipated increase in demand, Classic Legends is ramping up its production capacity. “We are doubling our capacities. We are really ramping up... because the Yezdi Roadster became such a hit that we were anyway increasing capacity. Now that is coming in very handy,” Thareja said.

The GST reforms have set the stage for a new chapter in the storied legacy of Jawa and Yezdi. By making these iconic brands more affordable, the government has not only revived nostalgia for motorcycle enthusiasts but also opened up opportunities for new riders to experience these legendary bikes. As Classic Legends gears up to meet rising demand, the road ahead looks promising for these once-dormant giants of the Indian motorcycle industry.