Royal Enfield’s popular motorcycles below 350cc will benefit from the recent GST rate cut, but larger bikes in its portfolio face higher taxation. The GST rate on two-wheelers below 350cc has been reduced from 28 per cent to 18 per cent. This will make Royal Enfield’s core models such as the Hunter, Classic, Meteor, Goan Classic, and Bullet more affordable. These bikes account for nearly 87 per cent of the company’s total sales as of August 2025. However, bigger motorcycles — including the Himalayan (450cc), Guerrilla (450cc), Scram (440cc), and the 650cc lineup (Interceptor, Continental GT, Super Meteor, Shotgun, and Interceptor Bear) — will now face a 40 per cent tax, up from 28 per cent.
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Mixed impact for Royal Enfield
Royal Enfield, the biggest player in the 350–650cc motorcycle segment, will see growth opportunities in its high-volume 349cc bikes, but higher taxation will affect its premium and aspirational models. The change comes at a time when the Himalayan and Guerrilla were gaining momentum in the adventure-tourer and roadster segments, while the 650cc range had become one of India’s best-selling premium motorcycles. Considering if the bikemaker decides to pass on all the benefits of GST rate revisions, the expected price hike or reduction is estimated below.
Expected prices of Royal Enfield bikes after New GST rate
| Bike Model | Engine Capacity | Current Price* (28% GST + 3% Cess) | Expected Price (40% GST or 18% as per engine capacity) | Expected Price Hike or reduction |
|---|
| Royal Enfield Hunter 350 | 349 cc | ₹ 1,49,900 | ₹ 1,34,910 | – ₹ 14,990 |
| Royal Enfield Classic 350 | 349 cc | ₹ 1,93,000 | ₹ 1,73,000 | – ₹ 20,000 |
| Royal Enfield Meteor 350 | 349 cc | ₹ 2,05,191 | ₹ 1,85,191 | - ₹ 20,000 |
| Royal Enfield Bullet 350 | 349 cc | ₹ 1,73,000 | ₹ 1,57,000 | - ₹ 17,000 |
| Royal Enfield Goan Classic 350 | 349 cc | ₹ 2,35,000 | ₹ 2,11,500 | - ₹ 23,500 |
| Royal Enfield Himalayan 450 | 452 cc | ₹ 2,85,000 | ₹ 3,10,650 | + ₹ 25,650 |
| Royal Enfield Guerrilla 450 | 452 cc | ₹ 2,39,000 | ₹ 2,60500 | + ₹ 21,510 |
| Royal Enfield Scram 440 | 443 cc | ₹ 2,08,000 | ₹ 2,26,700 | + ₹ 18,720 |
| Royal Enfield Super Meteor 650 | 648 cc | ₹ 3,72,000 | ₹ 4,05,480 | + ₹ 33,480 |
| Royal Enfield Shotgun 650 | 648 cc | ₹ 3,67,000 | ₹ 4,00,030 | + ₹ 33,030 |
| Royal Enfield Interceptor 650 | 648 cc | ₹ 3,09,551 | ₹ 3,37,400 | + ₹ 27,859 |
| Royal Enfield Classic 650 | 648 cc | ₹ 3,36,610 | ₹ 3,66,904 | + ₹ 30,294 |
| Royal Enfield Bear 650 | 648 cc | ₹ 3,46,000 | ₹ 3,77,100 | + ₹ 31,100 |
(* Current Price is starting ex-showroom, which may change according to the varients and colour)
Company’s call for uniform GST
Ahead of the GST Council’s decision, Royal Enfield had requested a uniform rate for all motorcycles. Automobiles attract 28 per cent GST, the highest slab, with an additional compensation cess depending on vehicle type before the revision.
In a LinkedIn post, Eicher Motors Executive Chairman Siddhartha Lal said Indian companies had 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," Lal said.
He 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."
Lal warned that a differential tax rate could shrink the domestic over-350cc segment and reduce investments needed for India to compete globally. He noted that motorcycles above 350cc form only about 1 per cent of India’s two-wheeler market, and higher taxation would not add much revenue but would hurt growth.
"Raising GST on them would add negligible revenue but contract the segment. For Indian riders, these motorcycles are not luxury goods; they are efficient, affordable alternatives to cars, offering lower fuel use and maintenance - benefits that also help reduce India's fuel imports," he said.
(Disclaimer: All prices are based on official websites and industry sources. Please check with your nearest dealer for the exact ex-showroom price.)
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