GST Relief Misses Big Bikes: 350cc+ Motorcycles Like Royal Enfield & KTM Get Costlier

The Indian government's GST 2.0 reforms have led to a surprising twist for motorcycle buyers. While bikes up to 350cc have become cheaper due to a GST reduction, premium bikes above 350cc are now costlier. The new tax rate for high-powered bikes has jumped to 40%, directly impacting models from brands like Royal Enfield and KTM.

GST 2.0: Relief for Small Bikes, Hike for Premium Segments

From September 22, 2025, GST on bikes with engines up to 350cc dropped from 28% to 18%, aiming to make commuter bikes more affordable for the masses. However, bikes exceeding that capacity now fall into a luxury category, with GST rising from 31% to 40%. This decision targets enthusiast models purchased primarily for performance and leisure.

Royal Enfield Models See Price Jump

The Royal Enfield Himalayan 450 now costs ₹3.06 lakh (ex-showroom), up due to GST. Featuring a 452cc liquid-cooled engine, adjustable seat height, and an advanced TFT display, it’s tailored for touring. Upcoming Guerrilla 450 and Scram 440, based on the same platform, will also get price increases alongside 650cc twins like the Interceptor 650 and Continental GT 650, powered by 648cc parallel-twin engines.

KTM's 390 Series Also Hit

The KTM 390 Duke, a top choice among youth, sports a 398.63cc engine and high-end features like ride modes, cornering ABS, and quickshifter. Though the price is impacted by the GST hike, the company may absorb additional costs. Meanwhile, the 390 Adventure and RC 390, built on the same engine platform, feel the same GST shadow, but price implications remain unchanged for now.

Read More: Government Activates GST Grievance Redressal On National Consumer Helpline Portal!

Other Premium Brands Face Similar Fate

Brands like Triumph and Harley-Davidson are not exempt. Models like Triumph Speed 400 and Scrambler 400 X fall above 350cc, although no direct changes in sticker prices have been declared yet. Harley-Davidson's entire India lineup, with larger engines, is expected to get significantly pricier.

Conclusion

While GST reductions have aided everyday riders, fans of performance motorcycles now face increased price tags. The new classification of bikes over 350cc as luxury goods has created a split market, rewarding the average consumer but disappointing premium buyers.

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