Royal Enfield Reportedly Says No To Downsizing After GST 2.0
It’s reported that the brand will try to appeal to the government (possibly to modify the tax bracket)
The current GST structure has made bikes above 350cc significantly costlier, and manufacturers like Bajaj (including KTM and Triumph) are already reacting by announcing that they will be scaling down engines to avoid the higher tax. Royal Enfield, however, has reportedly taken the opposite stance.
No Replacement For Displacement
The company says it will not reduce engine size on any of its 350cc-plus models, even if it affects pricing and demand. Siddhartha Lal, Managing Director of Royal Enfield, said that the move will impact India sales and production scale, but also mentioned that altering products overnight isn’t the answer. Instead, the brand plans to take its case to the government and push for a reconsideration of the tax slab.
This makes a lot of sense as all two-wheelers above 350cc – it doesn’t matter if it’s a 400cc or even a 1200+cc bike – are all clubbed into a single tax bracket of flat 40%. This essentially means a 400cc bike and a superbike are equally treated as ‘luxury goods’, which isn’t fair by any means.
Royal Enfield 250
While the big bikes stay untouched, Royal Enfield is also preparing an all-new 250cc bike to strengthen its reach. The engine will likely be sourced from CFMoto, and be adaptable for mild-hybrid tech. The styling, chassis, and cycle parts will all still remain Royal Enfield. This new bike will sit below the Royal Enfield Hunter 350, and serve as the new entry point into the brand’s line-up. We estimate it could cost somewhere between Rs 1.20 lakh to 1.30 lakh (ex-showroom).
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Where brands like Bajaj experiment aggressively with several engines and multiple bikes in the same segment, Royal Enfield takes the opposite approach: fewer engines, more models, and longer testing cycles. That’s why bikes like the Royal Enfield Bullet 650 and the Royal Enfield Himalayan 750 take their own sweet time to hit the streets even though they are spotted for over a year before launch.
BikeDekho Says
In a market suddenly reshuffled by GST 2.0, the above mentioned approach could help the company maintain stability while preparing better long-term solutions. Rather than a knee-jerk reaction, Royal Enfield’s response seems thoughtful and measured. We’ll have to see whether the government welcomes the feedback.
SourceUser Reviews
It is a nice bike with good performance. I prefer it for highway touring and off-roading. Until the first service, I was not satisfied with the mileage because I was getting only 18–19 kmpl. However, after the first service, I am impressed. Read More
Would recommend it one hundred percent as entry level bike for bike enthusiasts. The raw power it delivers oh my god. I can say this as it is my first bike. As far as I have driven this bike, I have never encountered any problems so far. Ten on ten.Read More
A good touring machine with great road presence and performance, paired with stylish looks, decent mileage, and reliability. Royal Enfield offers service and support across India. Surprisingly agile in city conditions, you don't feel the bulk of the bike, and its amazing low-end torque means you don't need frequent gear shifts.Read More
Interceptor 650 has been an amazing bike to own. The 650cc parallel twin engine is smooth, powerful and fun to ride specially on highways. The exhaust note is addictive and the bike feel very stable on high speed, overall a great combination of performance, classic looks and riding experience. I have thoroughly enjoyed owning and riding it. Read More
This is an excellent bike and had great fun riding. The back seat is include along with the bike. Had 1250km run including office travel and long rides and it has been fun doing both. Great comfort. The sheet metal grey gives a batmobile feel and experience. Looks damn good without the back seat, I generally carry it in my backpack.Read More