GST on motorcycles above 350cc hiked; Royal Enfield, Bajaj to bear the brunt

The Goods and Services Tax (GST) Council has revised tax rates on two-wheelers, and motorcycles with an engine capacity of over 350 cc will now face a steep hike. Effective September 22, the GST rate on these larger bikes will rise from 31 per cent to 40 per cent. The timing is crucial, as the revision comes just ahead of the festive season, when demand for new vehicles typically peaks.

Interestingly, motorcycles under 350 cc will actually benefit from a reduction, with GST dropping from 28 per cent to 18 per cent. This creates a clear divide in pricing impact across segments.

Royal Enfield: Safe Below 350 cc, Hit Above

Royal Enfield, the biggest player in the 350–650 cc space, finds itself on both sides of the tax revision.

Unaffected: Core 349 cc models such as the Hunter, Classic, Meteor, Goan Classic, and Bullet now move into the lower 18 per cent slab, making them more affordable.

Affected: Larger bikes — including the Himalayan (450 cc), Guerrilla (450 cc), Scram (440 cc), and the 650 cc (Interceptor, Continental GT, Super Meteor, Shotgun, and Interceptor Bear) — will all become significantly more expensive.

This is a setback, especially since the Himalayan and Guerrilla are gaining traction in the adventure-tourer and roadster categories, while the 650 cc lineup is among India’s best-selling premium motorcycles.

Bajaj and Triumph: Middleweight Lineup Feels the Pinch

Bajaj Auto will also be impacted. The Dominar 400 and Pulsar NS400Z fall into the higher tax bracket, as do the brand’s co-developed Triumph motorcycles — Scrambler 400X, Speed 400, Thruxton 400, and upcoming models on the same platform.

Since these motorcycles were positioned as accessible entry points into the mid-capacity segment, the hike may blunt their value proposition.

KTM: All Performance, All Affected

KTM, owned by Bajaj, exclusively sells performance-oriented motorcycles. Its lineup over 350 cc, including the RC, Duke, and Adventure series, will also see prices climb under the new regime.

What This Means for Buyers

While entry-level offerings under 350 cc become more affordable, enthusiasts eyeing bigger machines this festive season will need to budget more.

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