The new GST tax structure will have an impact on the above 350cc motorcycle segment that is currently dominated by brands such as Royal Enfield, Triumph, KTM and Harley-Davidson
As new GST tax slabs come into effect from 22nd September 2025, motorcycles in the above 350 cc segment are about to get costlier. A recent reshuffle in GST percentage has thrown the two wheeler segment into disarray. There will be buyers across the 350cc will have to shell out a great deal more.
As the new tax rates come into effect from 22nd Sept, motorcycles above the 350cc capacity will see an increase in GST to as much as 40%. This will relate to a substantial increase as currently the tax slab stands at 28% GST plus 3% Cess. The increase will relate to a massive 9%.
New GST Structure for Above 350cc Motorcycles
Demand across the premium motorcycle segment is comparatively lower than that of the smaller capacity bikes. However, a surge in higher capacity bikes have also seen some improvement in recent months with newer offerings entering the fray. For example, Royal Enfield’s lineup that consists of a range of bikes in both these segments will see models such as the Hunter, Classic, Meteor and Bullet that contributed to nearly 87% of total sales in August 2025 get more affordable post September 22.
However, its larger bikes, among which are the Himalayan 450cc, Guerrilla 450cc, Scram 440cc, and the RE 650cc Twins, will now face a 40% GST tax, up from 28%. The same will hold true for larger models in the KTM and Triumph portfolio which will see a significant price hike. This discrepancy in GST structure may significantly impact demand for premium and performance-oriented motorcycles.
For instance, the Bajaj Pulsar NS400Z could see an increase of around Rs 13,100, while premium bikes like the KTM 390 Duke and Royal Enfield Interceptor 650 could become dearer by over Rs 20,000. Similarly, Triumph’s Speed 400, Scrambler 400X, and Thruxton 400 may see hikes between Rs 17,000 and Rs 18,800. Even the Himalayan 450 will not be spared, with an increase of nearly Rs 20,500. This marks a significant shift for enthusiasts, as higher displacement motorcycles, often seen as aspirational buys, will now carry an even steeper price tag under the new GST regime.
Appeal for Uniform GST Structure for Motorcycles
Bajaj Auto and Royal Enfield has appealed to the GST Council to bring about a uniform rate of taxes across all segments. RE MD Siddhartha Lal and Bajaj Auto MD Rajiv Bajaj have pointed out the need for an even GST rate across the two-wheeler market. While lowering the tax structure for 350cc so heavily will have an adverse impact, not so much on local demand, but more particularly where exports are concerned.
Source
Source: Bike - rushlane.com
