The implementation of GST 2.0 in India has altered the pricing dynamics for motorcycles. While bikes with engines below 350cc will see a price reduction, models above 400cc will become more expensive due to higher taxes. Royal Enfield, one of India’s most popular motorcycle brands, is impacted in both segments.
Royal Enfield Bikes That Will Become Cheaper
The GST on Royal Enfield bikes with engines under 350cc, such as the Hunter 350, Classic 350, Meteor 350, Bullet 350, and Goan Classic 350, has been reduced from 28% to 18%. This will make these bikes more affordable, particularly for first-time buyers and daily commuters.
| Bike | Engine | Estimated Price Cut (Rs) |
|---|---|---|
| Hunter 350 | 349cc | 14,990 |
| Classic 350 | 349cc | 20,000 |
| Meteor 350 | 349cc | 20,000 |
| Bullet 350 | 349cc | 17,000 |
| Goan Classic 350 | 349cc | 23,500 |
These bikes account for around 87% of Royal Enfield’s sales, so the price reduction is expected to boost demand and attract new buyers.
Royal Enfield Bikes That Will Become Expensive
Conversely, larger bikes such as the Himalayan 450, Guerilla 450, Scram 440, and 650cc series will see their GST increase from 28% to 40%, leading to higher prices. Customers looking to buy premium and adventure-tourer models will now need to factor in this price hike.
| Bike | Engine | Estimated Price Hike (Rs) |
|---|---|---|
| Himalayan 450 | 452cc | 25,650 |
| Guerrilla 450 | 452cc | 21,510 |
| Scram 440 | 443cc | 18,720 |
| Super Meteor 650 | 648cc | 33,480 |
| Shotgun 650 | 648cc | 33,030 |
| Interceptor 650 | 648cc | 27,859 |
| Classic 650 | 648cc | 30,294 |
| Bear 650 | 648cc | 31,100 |
Conclusion
GST 2.0 has created a clear divide in Royal Enfield’s pricing: affordable 350cc bikes become cheaper, attracting more buyers, while premium adventure and cruiser models will see higher costs, potentially affecting sales in the upper-end segment.
