The Indian government’s implementation of GST 2.0 is poised to reshape the motorcycle market, particularly for Royal Enfield. The tax adjustments will lead to price reductions for bikes with smaller engines, while those with larger engines will experience price hikes. This shift is expected to influence consumer choices and market dynamics.
Royal Enfield motorcycles with engines under 350cc, such as the Hunter 350, Classic 350, Meteor 350, Bullet 350, and Goan Classic 350, will see reduced prices due to lower GST rates. This change is anticipated to boost their popularity among new riders and those seeking economical options.
Conversely, higher GST rates will increase the prices of larger Royal Enfield models, including the Himalayan 450, Guerrilla 450, Scram 440, and the 650cc series. This will likely affect their market positioning and sales performance.
The GST on bikes with engines below 350cc has been decreased from 28% to 18%. This segment accounts for a significant portion of Royal Enfield’s sales, making these bikes more affordable for a wider audience, especially first-time buyers. In contrast, the GST for bikes above 400cc, encompassing models such as the Himalayan, Guerrilla, Scram, and the 650cc series, has been increased from 28% to 40%. Potential buyers of premium and adventure-tourer bikes should account for these higher prices when making their purchasing decisions.