From September 22nd, the GST on two-wheelers under 350cc has dropped from 28% to 18%. This makes models like the Hunter, Classic, Meteor, Goan Classic and Bullet cost less. But bigger beefy machines: Himalayan, Guerrilla, Scram, and the entire 650cc range now face a hefty 40% GST, up from 31%. This story affects nearly 87% of Royal Enfield’s sales and could shape riding dreams this festive season.
Bike Model | Engine Capacity | Older Ex-showroom Price | Updated Price |
349cc | Rs 1.50 Lakh | Rs 1.35 Lakh | |
349cc | Rs 1.93 Lakh | Rs 1.73 Lakh | |
349cc | Rs 2.05 Lakh | Rs 1.85 Lakh | |
452cc | Rs 2.85 Lakh | Rs 3.11 Lakh | |
452cc | Rs 2.39 Lakh | Rs 2.60 Lakh | |
648cc | Rs 3.72 Lakh | Rs 4.05 Lakh | |
648cc | Rs 3.67 Lakh | Rs 4.00 Lakh | |
648cc | Rs 3.10 Lakh | Rs 3.37 Lakh | |
647.95cc | Rs 3.37 lakh | Rs 3.67 Lakh |
Low-capacity bikes just got friendlier. The GST council cut their rate to 18%. That makes models like the Hunter 350 and Classic more affordable. These bikes account for around 87% of its sales, so that lower prices may boost demand.
On the flip side, premium and adventure-touring bikes are hit hard. Himalayan, Guerrilla, Scram, and 650cc models now attract 40% GST. That’s a big price jump. Experts worry this might slow down sales of aspirational Royal Enfield models.
Royal Enfield asked the GST Council to adopt a uniform 18% rate for all motorcycles. CEO Siddhartha Lal said the split tax system may hurt India’s global bike industry and the growth of higher-capacity models.
Siddhartha Lal, Eicher Motors Executive Chairman, said: "By delivering exceptional value, we are drawing riders worldwide to shift from larger, higher-displacement machines to Indian-made mid-size motorcycles. To sustain this momentum, a uniform GST of 18 per cent across all two-wheelers is critical."
He also added, "Lowering GST for less than 350cc will help broaden access, but raising GST for over 350cc would damage a segment vital to India’s global edge.”
Before you go, don’t forget to check out the recently launched 2025 Yamaha R15 range.
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