Royal Enfield Reduces Prices on 350 cc Motorcycle Range by Up to Rs 22,000 Following GST 2.0 Benefits

The recent bill passed in the 56th GST Council Meeting by the Parliament of India has altered the Indian automotive industry. Many cars, bikes, and scooters have revised their prices following the GST 2.0 benefits. Now, Royal Enfield has joined the other two-wheeler manufacturers to pass on the benefits of GST price cuts for Indian customers.

With the latest tax reforms proposed by the government of India, Royal Enfield has announced that it will reduce the prices of the 350 cc motorcycle range across the portfolio with effect from September 22, 2025. This major price cut is a direct result of the Indian government's recent revised GST 2.0, which lowers the tax rate on two-wheelers below 350 cc from 28% to 18%. The move aims to boost affordability and attract first-time buyers.

GST 2.0: What Changed for Royal Enfield?

The Government of India has introduced the new GST tax reform, which will boost the Indian automotive market ahead of the upcoming festive season. The main highlight of the new GST 2.0 tax reform is the reduction of GST on two-wheelers with engine capacities. Those bikes and scooters that have engine capacities up to 350 cc will be taxed under the 18% GST tax slab, and those that have engine capacities beyond 350 cc will face a flat 40% GST with no additional Cess.

This reduces the overall tax burden on these motorcycles by approximately 13%. Royal Enfield, which offers multiple high-selling models within this segment, has eagerly passed on the full tax benefits to its customers, allowing for price reductions that can go up to Rs 22,000. After the new GST is implemented, Royal Enfield's larger displacement models, such as the Himalayan 450 and Guerrilla 450, as well as the 650 cc twins like the Interceptor and Continental GT, will witness an increase in prices.

From The Director’s Desk

Speaking about the latest GST reforms proposed by the government of India, Mr. B. Govindarajan, MD of Eicher Motors and CEO of Royal Enfield, said, “The government of India has taken a positive approach on the latest GST reforms. This new GST 2.0 will not only make motorcycles under 350 cc more accessible but will also excite the first-time buyers.”

He later added, “Royal Enfield is happy to announce that we are passing the full GST benefit of the price revision directly to our consumers, covering the larger audience for the Royal Enfield community.”

Price Cuts on Popular 350 cc Models

Motorcycles with 350 cc engines will benefit from the updated prices following the introduction of GST 2.0, which will result in a reduction of up to Rs 22,000 across all Royal Enfield models. The following list shows the reduction in price cuts for the Royal Enfield 350 cc motorcycle range.

Impact on Consumer Sentiment and Market Dynamics

Royal Enfield’s positive approach to passing on the GST benefits is a significant boost for its 350 cc portfolio. The price cut directly addresses affordability and increases the demand in the motorcycle market. However, the price hike for motorcycles above 350 cc could soften demand slightly in the higher displacement category.

Also Read: Royal Enfield Reflects with 55% Sales Surge in August 2025

Conclusion

The decision to pass the GST 2.0 benefit will gradually help Royal Enfield boost sales figures. This decision is very customer-centric and holds a long-term vision to democratize, but also reaffirms in positive sales outcomes.