GST Impact on bikes: This is how much a Royal Enfield would now cost

The Goods and Services Tax or GST has impacted the Indian automotive industry in a positive effect. Cars, two-wheelers and commercial vehicles have witnessed a considerable reduction in price barring a few categories. Here is what a Royal Enfield motorcycle would cost you

By: | Published: July 5, 2017 10:22 AM

 

 

GST or Goods and Services Tax that has been put into action from 1st July this year has seen a mixed reaction where some industries have taken a negative impact while others have witnessed a benefit. For the Indian automotive industry which includes two-wheelers, four-wheelers and commercial vehicles, GST has proven to be beneficial for most segments. In the new tax structure, a standard GST is levied on two-wheelers which according to the earlier tax structure included Excise Duty, CST (Central Sales Tax), VAT (Value Added Tax) and NCCD (National Contingency Calamity Duty) incurred a total of 30.2 percent tax on two-wheelers irrespective of any parameter. Under the GST tax structure, vehicles below the engine capacity of 350 cc would attract a tax of 29 percent while those above it would now have a marginal increase to 31 percent. Royal Enfield is one of the few manufacturers which caters to both categories in terms of engine capacity and the entry-level Royal Enfield motorcycles have now seen a dip in price.

The entry-level Bullet 350 which retailed at Rs 1.28 lakh, on-road, Chennai will now be cheaper by Rs 1,661 and cost roughly Rs 1.26 lakh. The Electra, Classic 350 and the Thunderbird 350 have also witnessed a price drop of Rs 2,211, Rs 2,015 and Rs 2,165. The larger capacity motorcycles from the Royal Enfield stable which include the Classic 500, Classic Desert Storm, Classic Chrome, Thunderbird 500, Bullet 500, Continental GT and the Himalayan will now see a slight rise in on-road prices. The Classic 500 would be dearer by Rs 1,490 and now cost Rs 1.95 lakh, on-road in Chennai while the Classic Chrome will now retail at Rs 1.98 lakh. The most expensive Royal Enfield until now, the Continental GT would see a negligible rise of Rs 301 from its pre-GST rate of price of Rs 2,31,336 to Rs 2,31,637, on-road in Chennai. The Bullet 500 and the Himalayan will now cost Rs 1,169 and Rs 2,717 more over the pre-GST price.

Also Read: New Royal Enfield Continental GT with 750 cc engine spotted again, to compete with Harley-Davidson Street 750 in India
Royal Enfield has also been working on a 750 cc motorcycle, which is in its on-road test phase and has been spied a number of times around the company's facility near Chennai. Although an official announcement is yet to be made, but considering it being tested on public roads now, the launch will happen soon. Power figures are also to be confirmed that is expected to be around 50 hp and this engine will be mated to a 6-speed gearbox. ABS or Anti-lock Braking System may also be a standard fitment as it makes sense for the company to add this safety feature considering it will be competing with the Harley-Davidson Street 750, if not on the price tag, then on the feature list. The expected price of the Royal Enfield 750 cc motorcycle is expected to be around Rs 4 lakh, ex-showroom Delhi.

On-Road Chennai Prices of Royal Enfield bikes after GST Impact
Model Pre GST price Post GST Price Difference In Price
Bullet 350 127925 126264 -1661
Bullet Electra 143881 141670 -2211
Classic 350 152897 150882 -2015
Thunderbird 350 164596 162431 -2165
Classic 500 194066 195556 1490
Classic Desert Storm 197173 198808 1635
Classic Chrome 205902 207379 1477
Thunderbird 500 207719 209078 1359
Bullet 500 183513 184682 1169
Continental GT 231336 231637 301
Himalayan 181437 184154 2717
  1. K
    karpakarajan
    Jul 5, 2017 at 12:39 pm
    WAW the price of another essential is reduced! cost of services at banks insurance companies etc. appear to have increased!!
    Reply