Royal Enfield New GST Rate: Hunter 350, Classic Get Cheaper, Himalayan and 650cc Range Costlier

Mixed impact as GST cut benefits core models under 350cc, but raises rates on larger motorcycles

The government’s latest GST revision has brought a mixed bag for Royal Enfield enthusiasts. Starting September 22, 2025, the GST on two-wheelers below 350cc has been reduced from 28 per cent to 18 per cent, making Royal Enfield’s most popular models — Hunter 350, Classic, Meteor, Goan Classic, and Bullet, more affordable. Together, these models contribute nearly 87 per cent of the company’s sales, ensuring a significant boost for its high-volume portfolio.

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However, the move has dealt a blow to Royal Enfield’s premium motorcycles. The Himalayan adventure-tourer, the new Guerrilla roadster, and the 650cc range including the Interceptor, Continental GT, and Super Meteor, will now attract higher taxation, making them more expensive. This comes at a time when Royal Enfield had been witnessing strong demand for its bigger bikes in both domestic and export markets.

Royal Enfield, a dominant force in the 350–650cc motorcycle space, had earlier urged the GST Council to implement a uniform rate of 18 per cent across all two-wheelers. Automobiles currently fall under the highest slab of 28 per cent GST, with an additional compensation cess depending on engine size.

Find below the new price list of Royal Enfield bikes:

Royal Enfield Bullet 350-133,446

Royal Enfield Bullet 350 X-₹127,279-₹142,890

Royal Enfield Classic 350-171,569-₹188,436

Royal Enfield Meteor 350-₹178,744-193,656

Royal Enfield Interceptor 650-₹269,764-₹291,007

Royal Enfield Continental GT 650-₹285,679-₹306,922

Eicher Motors Executive Chairman Siddhartha Lal, in a LinkedIn post, expressed concern over the impact of the decision. “By delivering exceptional value, we are drawing riders worldwide to shift from larger, higher-displacement machines to Indian-made mid-size motorcycles. To sustain this momentum, a uniform GST of 18 per cent across all two-wheelers is critical,” he wrote.

While welcoming the GST cut for sub-350cc motorcycles, Lal warned that raising taxes on bigger bikes could hurt a segment that is vital for India’s premium motorcycle market. “For Indian riders, these motorcycles are not luxury goods; they are efficient, affordable alternatives to cars, offering lower fuel use and maintenance. They also help reduce India’s fuel imports. Raising GST on them would add negligible revenue but contract the segment,” he added.