Following the introduction of GST 2.0 in India, the prices of motorcycles are set to change. The tax structure has been adjusted, impacting various models of Royal Enfield. Bikes with engines below 350cc will become more affordable, whereas those above that capacity will see a price increase due to higher GST rates. Royal Enfield, known for its dedicated fan base in the country, is positioned to be significantly affected by this change.
Motorcycles with engines smaller than 350cc, including the Hunter 350, Classic 350, Meteor 350, Bullet 350, and Goan Classic 350, will benefit from reduced GST, leading to lower prices. This shift will enhance their appeal among new riders and those seeking budget-friendly options.
Conversely, larger Royal Enfield motorcycles, such as the Himalayan 450, Guerrilla 450, Scram 440, and models within the 650cc series, will face higher prices. The updated GST rates will affect their market positioning and influence consumer purchasing decisions.
The GST reduction, from 28% to 18%, specifically benefits Royal Enfield models with engines under 350cc. These models constitute a significant portion of the company’s sales. The decrease will make these bikes more accessible to a wider audience, especially new buyers and those seeking affordable daily transportation. Meanwhile, bikes above 400cc, including the Himalayan, Guerrilla, Scram, and the 650cc series like Interceptor and Continental GT, will experience a GST increase from 28% to 40%. Potential buyers of premium and adventure-tourer bikes must factor in the increased costs when making their purchasing decisions.