The implementation of GST 2.0 in India is set to affect motorcycle prices. While bikes with engines below 350cc are expected to become cheaper, those with engines exceeding 350cc will face increased taxes. Royal Enfield, a popular brand in India, is expected to experience a mixed impact. The company’s portfolio includes bikes starting from 350cc engines. Therefore, it’s important to understand how GST 2.0 will influence the prices of Royal Enfield motorcycles.
Motorcycles with engines under 350cc, such as the Hunter 350, Classic 350, Meteor 350, Bullet 350, and Goan Classic 350, will see a decrease in GST. Consequently, these motorcycles will become more affordable, making them more attractive to new buyers and riders.
On the other hand, some larger Royal Enfield motorcycles will become more expensive. The Himalayan 450, Guerrilla 450, Scram 440, and the 650cc series will be subject to higher GST rates, leading to increased prices. This change is expected to impact sales and demand across different segments.
The GST on motorcycles with engines under 350cc has been reduced from 28% to 18%. Royal Enfield derives approximately 87% of its sales from this segment. These price reductions will make these motorcycles even more accessible, particularly for first-time buyers and daily commuters. Conversely, the GST on bikes above 400cc, including models like the Himalayan, Guerrilla, Scram, and the 650cc series such as Interceptor and Continental GT, has been increased from 28% to 40%. Customers interested in premium and adventure-tourer bikes should consider these increased prices when planning their purchases.
