Royal Enfield’s recent pricing shift reflects a broader strategic readjustment in response to policy changes. After the GST on motorcycles up to 350cc was lowered from 28% to 18%, the company reduced prices across its 350cc lineup by up to ₹22,000, effective September 22, 2025. Bikes like the Hunter 350, Classic 350, Bullet 350, Meteor 350, and Goan Classic 350 will be significantly more affordable.
In announcing the changes, Royal Enfield highlights its aim to make its 350cc motorcycles more accessible to first-time buyers and younger riders. This segment contributes heavily to its sales volume, and more affordable pricing is expected to expand the customer base. The move also positions RE more competitively against brands targeting similar riders in terms of price and performance.
In contrast, the company’s models above 350cc—such as the Himalayan 450, Guerrilla 450, Scram 440, Interceptor 650, and Continental GT 650—are now subject to increased taxation. The GST rate for those bikes has increased from 28% to 40%, leading to higher prices. This dual-pricing strategy underscores Royal Enfield’s focus: deepen its grip on the mid-size commuter category while accepting a premium lineup for larger displacement bikes.
Going forward, the success of this strategy will depend on how well RE manages demand, inventory, and ride-away costs. If implemented effectively, the new pricing could act as a catalyst for growth in a segment that has long been considered its core. For now, potential buyers and rivals alike will be watching closely.