Will Bullet 350 become cheaper after the GST changes? Royal Enfield MD made this appeal.

Royal Enfield MD Siddharth Lal has made a big appeal to the government regarding GST on all two-wheelers. Let us know what the impact will be on customers and companies if 40 percent GST is imposed on bikes above 350cc?

The central government is preparing to change the GST system. According to the new proposal, different taxes can be levied on bikes with small and large engines. If this proposal is implemented, 18% GST will be levied on bikes with engines of less than 350cc, while motorcycles with engines of more than 350cc will come under the luxury category and 40% GST will have to be paid on them.

 

Actually, this will have a direct impact on companies and customers, especially on Royal Enfield, because it has the highest sales in this segment. Meanwhile, Royal Enfield MD Siddharth Lal has appealed to the government on social media to keep a uniform 18% GST on all two-wheelers. Now it remains to be seen whether Bullet 350 will be cheaper or costlier after this change.

Why will Royal Enfield be more affected?

• Royal Enfield is the leader in the Indian mid-capacity motorcycle segment. There is a huge demand for J-series bikes like Classic, Bullet, Hunter and Meteor. Apart from this, the company also sells many motorcycles on 450cc and 650cc platforms.
• In such a situation, if 40% GST is implemented, the prices of these bikes will increase significantly, and this segment may be affected. In the year 2024, Royal Enfield made a record by selling 8.57 lakh units in India. But this growth may stop due to an increase in tax.

Siddharth Lal's appeal to the government

• Royal Enfield MD Siddharth Lal has urged the government on social media to keep a uniform 18% GST on all two-wheelers. He said that India is already the world leader in small-engine bikes and is now making big inroads in mid-capacity bikes as well.
• If the tax on bikes with bigger engines increases, it will harm the growth of the segment. He believes that we should strengthen our hold across the world by giving better value to the customers and Indian-made mid-size motorcycles. For this, it is necessary that the tax structure be the same for everyone.

What does the new GST mean for customers?

• Let us tell you that if the new GST rule is implemented, bikes less than 350cc may become cheaper, because only 18% tax will be levied on them. Bikes above 350cc will become expensive, because the tax on them will be 40%.
• For companies like Royal Enfield, the mid-capacity segment will be affected. Prices of bikes like the Bullet, Meteor, Interceptor may increase for customers.