Royal Enfield has announced that it will be passing on the benefits of the recent Goods and Services Tax (GST) reduction to its customers in India. The company will be reducing the prices of its 350cc models, including the Classic 350, Hunter 350, and Bullet 350, starting from September 22. However, this price reduction will be applicable only to models with an engine capacity of 350cc or less, as the Indian government has reduced the GST rate for two-wheelers in this category from 28% to 18%.
On the other hand, Royal Enfield bikes with an engine capacity above 350cc will see a price hike due to an increase in the GST rate. The new GST rate for bikes above 350cc has been increased to 40%, up from the previous 28% plus a 3% cess. This means that models like the Himalayan 450, Guerilla 450, and the entire 650cc range will become costlier.
The company has not yet revealed the new prices for its models, but has confirmed that the revised prices will be effective from September 22, when the new GST rates come into effect. The price reduction for the 350cc models is expected to boost sales and increase overall consumption, while the price hike for the higher-capacity models may affect demand.
It’s worth noting that the GST reduction for two-wheelers is aimed at increasing consumption and boosting the economy. The Indian government’s decision to reduce the GST rate for bikes with an engine capacity of 350cc or less is expected to have a positive impact on the two-wheeler industry, which has been facing a slowdown in recent times. Royal Enfield’s decision to pass on the benefits of the GST reduction to its customers is a welcome move, and is expected to make its 350cc models more competitive in the market.