India’s GST 2.0 implementation is causing shifts in the motorcycle market, with Royal Enfield being a key player. The new tax structure will result in reduced prices for smaller-engine bikes, while larger-engine models will become more expensive. This will likely influence consumer behavior and the overall market landscape.
Specifically, Royal Enfield models with engines under 350cc, like the Hunter 350, Classic 350, Meteor 350, Bullet 350, and Goan Classic 350, will become more affordable due to lower GST rates. This could attract more buyers, especially new riders and those looking for cost-effective options.
In contrast, larger Royal Enfield motorcycles, including the Himalayan 450, Guerrilla 450, Scram 440, and 650cc series models, will see a price increase because of higher GST. This change is anticipated to affect sales and the demand for these bikes.
The GST on motorcycles with engines smaller than 350cc has been reduced from 28% to 18%. This move makes these bikes more accessible and affordable, particularly for new buyers and daily commuters. Meanwhile, bikes above 400cc, including models such as the Himalayan, Guerrilla, Scram, and the 650cc series, are subject to a GST increase from 28% to 40%. Buyers interested in premium and adventure-tourer bikes must consider these increased costs when planning a purchase.