Introduction

Yamaha has reduced ex-showroom prices for the R3 and MT-03 again in 2025 and this time it’s linked to the GST change for sub-350cc motorcycles, just like the Yamaha R3 MT-03 price cut.

What changed and why

• Motorcycles under 350cc now attract 18% GST instead of 28%, so the headline prices for the 321cc R3 and MT-03 have come down.
• Yamaha’s latest drop is about ₹20,000 on each model and this is after a bigger correction earlier this year which was in response to the initial launch prices.

Old vs new prices

• R3 goes from ₹3.60 lakh to ₹3.39 lakh (ex-showroom), a reduction of about ₹21,000.
• MT-03 drops from ₹3.50 lakh to ₹3.29–3.30 lakh (ex-showroom, city-dependent), a cut of about ₹20,000–₹21,000.

Normalized price table

Policy impact

• The 18% slab for sub-350cc bikes reduces ex-showroom prices for compliant models without features being dropped.
• Being below 350cc now has a clearer tax benefit, which helps refined twin-cylinder bikes like the R3 and MT-03.

Buyer value and positioning

• With lower prices, both Yams are now closer to single-cylinder competition while retaining the smoothness and composure of parallel twins.
• The net result is better value for riders who prioritize engine refinement and everyday usability over spec numbers.

Key specs (unchanged)

• 321cc parallel-twin, liquid-cooled; around 41.4 bhp and 29.5 Nm; 6-speed gearbox tuned for mid-range.
• Telescopic front fork, rear monoshock, dual-channel ABS, and a simple LCD display keep things familiar and functional.

Market context

• Volumes were low going into the GST update, with the R3/MT-03 duo recording very low sales in Q3.
• Earlier in 2025, a price realignment was done after launch pricing killed demand, and brought the bikes back to segment norms.

Expert comment

• Industry says the GST reduction will support festive season demand by making it more affordable without diluting the core product.
• Dealers in some regions may see more interest and slightly longer delivery times as prices stabilize under the new tax rate.

Competitive comparison

Also read: GST 2.0 Impact: 2026 Kawasaki Ninja ZX-10R Price Jumps to Rs 20.79 Lakh

What this means for buyers

• The updated tags improve access to twin-cylinder smoothness without crossing the 350cc threshold, which now carries a clearer tax disadvantage.
• For riders weighing single-cylinder performance against twin-cylinder refinement, the value equation has shifted in Yamaha’s favor.

Closing note
With GST-driven relief and restrained pricing, the R3 and MT‑03 now present a cleaner value story for buyers seeking a polished twin-cylinder experience at the premium entry point.