The new Goods and Services Tax (GST) rates and the abolition of compensation cess has brought a sense of joy across the entire Indian automotive industry. Almost all vehicles, including cars and twowheelers, will see a drop in prices after implementation of the new GST rates.
Royal Enfield is the latest OEM to announce price cuts on selected models in its lineup. The Chennaibased bikemaker will extend full benefits of the reduced tax rates to the consumers looking to buy any 350cc Royal Enfield. These benefits have also been extended across its service, apparel, and accessories portfolio. This will help reduce the overall cost of ownership for riders and enhance the brand’s accessibility beyond motorcycles.
Speaking on the development, B Govindarajan, Chief Executive Officer, Royal Enfield said, “The Government of India’s latest GST reform will not only make motorcycles under 350cc more accessible but will also excite the firsttime buyers. Royal Enfield is delighted to announce that we are passing the full GST benefit of the price revision directly to our consumers, opening the world of Royal Enfield to an even larger community of riders.”
The new prices will come into effect from 22 September 2025, the same day the new GST rates come into effect. With this update, prices of all Royal Enfield 350cc motorcycles will be reduced by up to Rs 22,000. Previously all motorcycles were levied a 28 percent GST on top of a 3 percent compensation cess, taking total taxes to 31 percent. With the new GST rates at 18 percent and no compensation tax, prices of motorcycles smaller than 350cc are expected to fall by up to 13 percent.
Royal Enfield sells five motorcycles in the 350cc category including Classic, Meteor, Hunter, Bullet and Goan Classic. Interestingly, all four models are powered by the same 349cc aircooled, singlecylinder engine that is mated to a 5speed gearbox. This motor churns out 20.2 bhp and 27 Nm of peak torque. The effective prices of each variant will be announced soon.
While prices for motorcycles with engine capacity below 350cc will see price reduction, motorcycles with engine capacity above 350cc will be taxed higher. GST rates for such motorcycles have been raised to 40 percent. Thus, the effective tax rates have been raised from 31 percent (28 percent GST + 3 percent cess) by 9 percent.
Thus, prices for models like Scram 440, Himalayan 450, Guerilla 450, Interceptor 650, Continental GT 650, Super Meteor 650 and others will see a price hike from September 22 onwards.
