The Indian two-wheeler market is buzzing with the recent GST 2.0 reforms, effective from September 22, 2025, bringing a mixed bag of changes for Royal Enfield enthusiasts. The GST Council has slashed taxes on motorcycles with engines up to 350cc from 28% to 18%, making popular models more affordable. However, bikes exceeding 350cc now face a hefty 40% tax, up from 31% (28% GST + 3% cess), impacting premium offerings. Let’s dive into how these changes reshape Royal Enfield’s lineup and what they mean for riders.

Affordable Classics: 350cc Range Gets Cheaper

Royal Enfield’s 350cc lineup, including the iconic Classic 350, Hunter 350, Bullet 350, Meteor 350, and Goan Classic 350, is set to become more accessible. These models, which make up nearly 87% of the company’s sales, benefit significantly from the 10% GST reduction. For instance, the Hunter 350, a favorite for its retro charm and city-friendly design, could see its ex-showroom price drop to around ₹1.38 lakh, saving buyers approximately ₹15,000. Similarly, the Classic 350, known for its timeless appeal, and the Meteor 350, a versatile cruiser, will become more enticing for first-time buyers and retro enthusiasts alike. This price cut is a festive season boon, likely boosting demand in both urban and rural markets.

Premium Models Hit by Higher Taxes

On the flip side, Royal Enfield’s premium bikes, such as the Himalayan 450, Guerrilla 450, Scram 440, and the 650cc range (Interceptor, Continental GT, Super Meteor, and Shotgun), face a steeper tax burden. The new 40% GST slab, which replaces the earlier 31% effective rate, could increase prices by ₹18,720 to over ₹33,000, depending on the model. For example, the Interceptor 650, a popular choice among performance riders, may see a price hike of around ₹20,000. This tax increase, labeled as a “sin tax” for luxury goods, may dampen enthusiasm for these aspirational motorcycles, especially among adventure and premium segment buyers.

Market Impact and Industry Response

The GST 2.0 reforms create a clear divide in the two-wheeler market. While the tax cut on sub-350cc bikes supports affordability and mass-market appeal, the hike on larger bikes could slow sales in the premium segment. Royal Enfield’s MD, Siddhartha Lal, has voiced concerns, advocating for a uniform 18% GST across all motorcycles. He argues that higher taxes on bikes above 350cc, which form just 1% of India’s two-wheeler market, could harm the industry’s global competitiveness without significantly boosting government revenue. These bikes, Lal notes, are efficient alternatives to cars, reducing fuel consumption and maintenance costs.

What’s Next for Royal Enfield Buyers?

For riders eyeing a Royal Enfield, now is an opportune moment to grab a 350cc model before the festive rush. The price reductions make these bikes more budget-friendly, aligning with the brand’s legacy of accessible, soulful riding. However, those dreaming of premium models like the Himalayan or Interceptor may need to budget extra or act fast before prices climb on September 22. As the market adjusts, Royal Enfield’s blend of heritage and performance continues to captivate riders, despite the tax turbulence.

Read Also: Volkswagen and Skoda Slash Prices with GST 2.0: Save Big on Virtus, Taigun, Tiguan, Kushaq, and Slavia

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