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Royal Enfield 350 cc motorcycles are set to get cheaper by up to ₹22,000
Royal Enfield aims to pass on full benefits of a GST rate cut on motorcycles up to 350 cc. That includes Classic 350, Bullet 350, Meteor 350 and Hunter 350.
Royal Enfield has decided to pass on to customers the full benefit of GST rate cuts on motorcycles up to 350 cc engine capacity. That includes the Classic 350, Bullet 350, Meteor 350 and Hunter 350 series of motorcycles.
The reduction, which can be as high as ₹22,000 on some models, will come into effect from 22 September 2025, according to a company statement on Tuesday.
“The GST reforms will not only make motorcycles under 350 cc more accessible but also excite first time buyers,” B. Govindrajan, chief executive officer at Royal Enfield, said in the statement. “Our endeavour has always been to offer ‘pure motorcycling’ to riders, and this move enables us to make significant progress on that journey.”
“We are hopeful that this will help further fuel the thriving two-wheeler industry in India.”
On 4 September, the Narendra Modi government reduced GST on hundreds of items—from soaps to small cars—in India’s biggest indirect tax reform since July 2017 when the goods and services tax was first introduced. But while GST on motorcycles with engine capacity up to 350 cc was reduced to 18% from 28% earlier, larger motorcycles are clubbed with tobacco items and luxury goods in the 40% slab.
Royal Enfield will take a direct hit from this move.
In April-August 2025, sales of Royal Enfield’s 350 cc+ motorcycles rose 17% year-on-year to 65,443 units, indicating the importance of the 450 cc and the 650 platforms in growing the profit margins of the Madras Original. Still, its breadwinner 350 cc motorcycles dominated volumes, growing by 29% year-on-year to 4,02,132 units in April-August 2025.
On Tuesday, shares of Royal Enfield parent Eicher Motors Ltd. rose 0.88% to ₹6,873.55 apiece on the BSE even as the benchmark Sensex ended the day 0.39% higher at 81,101.32 points.
