Big Bikes Get Costlier in India | GST 2.0 Price Hike on 350+ CC Motorcycles Explained

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by

Himanshu
in ,

The Indian motorcycle market is experiencing a major shake-up. While GST 2.0 brought relief to small bikes and scooters by reducing tax rates, it has had the opposite effect on large-capacity motorcycles. Bikes above 350cc now attract a significantly higher tax rate, making them costlier than before. From Royal Enfield’s premium 650cc twins to other heavyweight motorcycles, the price increase is substantial and has caught the attention of enthusiasts across the country.

This article breaks down the new tax structure, how much more you will pay for popular models, and what this means for the premium two-wheeler market in India.

⚙️ What Changed in GST 2.0 for Motorcycles Above 350cc

  • Under the old regime, motorcycles above 350cc were taxed at 28% GST + 3% cess (about 31% total).
  • In GST 2.0, these bikes now fall under a flat 40% GST slab, eliminating cess but increasing the total tax burden by roughly 9 percentage points.
  • This translates to an ex-showroom price hike of tens of thousands of rupees depending on the model and engine capacity.

This policy shift clearly separates the mass-market commuter segment (under 350cc) from the premium big-bike segment, effectively making large-capacity motorcycles a luxury item.

📊 Price Hike Table: Before and After GST 2.0

The following table illustrates how prices of popular 350+ cc motorcycles have changed. Figures are approximate ex-showroom prices:

Model (350+ cc)Old Price (Approx)New Price (Approx)Increase
Royal Enfield Super Meteor 650₹3.72 lakh₹4.05 lakh₹33,000+
Royal Enfield Shotgun 650₹3.67 lakh₹4.00 lakh₹33,000+
Royal Enfield Classic 650₹3.36 lakh₹3.67 lakh₹30,000+
Royal Enfield Bear 650₹3.46 lakh₹3.77 lakh₹31,000+
Other Premium 350+ cc BikesVariesHigher₹25,000–₹35,000

Note: Actual on-road prices (with insurance, RTO, and accessories) will be higher.

🏍️ Who Feels the Pinch the Most

The biggest impact is on mid-premium motorcycles in the 350–650cc range. These include:

  • Royal Enfield’s 650cc range (Super Meteor, Shotgun, Classic 650, Bear 650).
  • Premium imports or CKD units under 650cc from brands like KTM, Triumph, and Honda.
  • Riders upgrading from smaller bikes to their first big bike now face a steeper entry price.

For bikes above 650cc (like big superbikes), the price increase in absolute terms may be even higher, but these already occupy the luxury bracket where buyers are less price-sensitive.

🔎 Why the Price Hike Matters

  • Higher Upfront Cost: Price hikes of ₹30,000+ make these motorcycles less accessible for mid-income buyers.
  • Finance Impact: Higher ex-showroom prices mean larger down-payments and EMIs.
  • Delayed Purchases: Some potential buyers may postpone or downgrade their purchase due to the increased cost.
  • Market Shift: Manufacturers may re-evaluate their pricing strategy or offer limited-time incentives to cushion the blow.

💡 How to Plan Your Purchase Now

  1. Budget for the Hike: If you’re eyeing a 350+ cc bike, factor in the extra ₹25,000–₹35,000 in your budget.
  2. Consider Variants: Look at lower variants or special editions which might still be relatively affordable.
  3. Check Dealer Offers: Some dealers may offer exchange bonuses or accessories to soften the impact.
  4. Plan Finance Early: Higher EMIs mean planning your finance options in advance.

📈 Impact on the Premium Motorcycle Market

  • Royal Enfield: As the leader in the 350–650cc space, Royal Enfield will be most affected. Price increases could slightly slow down its rapid growth but may also reinforce its “premium” positioning.
  • Competition: Brands like Honda, KTM, and Triumph may adjust their pricing or launch models with smaller engines to stay competitive.
  • Customer Sentiment: Enthusiasts may now weigh pre-owned options or consider bikes under 350cc where GST rates have actually come down.

📝 Key Takeaways

  • Tax Rate Up: GST for 350+ cc bikes jumped from ~31% to 40%.
  • Prices Up by ₹30,000+: Popular models like Royal Enfield 650cc twins see hikes of ₹30,000–₹33,000 ex-showroom.
  • Plan Ahead: Factor the higher cost into your budget, explore dealer offers, and book early to lock in prices if you’re upgrading soon.
  • Segment Realignment: The market is likely to see a shift as manufacturers and buyers adapt to the new pricing.

⚠️ Disclaimer

All prices and increases mentioned are approximate ex-showroom figures after GST 2.0. Actual on-road costs will vary depending on state, city, variant, and dealer. Buyers should confirm the latest prices and any offers with authorized dealerships before making a purchase decision.