Royal Enfield Classic 350 GST Rate 2025: Price Cut & On-Road Cost

Royal Enfield Classic 350 GST Rate 2025: Price Cut Details and Impact

Introduction

The Royal Enfield Classic 350 has long been a favorite for motorcycle enthusiasts across India, known for its timeless design and robust performance. In 2025, a key update has made this iconic bike even more affordable: the government’s revision of the GST rate on motorcycles up to 350cc, slashing it from 28% to 18%. This significant tax reduction has resulted in substantial price cuts on the Classic 350 and other Royal Enfield 350cc models. This blog breaks down the latest GST rate impact on the Royal Enfield Classic 350, what the new prices look like, and how this benefits buyers in 2025.

What is the New GST Rate on Royal Enfield Classic 350 in 2025?

Recently, the Goods and Services Tax (GST) Council approved a revised tax structure for two-wheelers in India:

• Motorcycles up to 350cc now attract an 18% GST, down from the earlier 28%.

• Motorcycles above 350cc have their GST increased to 40%.

This reclassification directly benefits the Royal Enfield Classic 350, which has a 349cc engine, enabling the manufacturer to pass on the tax savings to customers.

How Much Has the Royal Enfield Classic 350 Price Reduced?

Royal Enfield has announced price cuts of up to ₹20,000 on the Classic 350 across different variants starting from September 22, 2025. The reduction reflects the full benefit of the GST cut being passed on to customers:

Classic 350 Variant	Old Ex-Showroom Price (₹)	New Ex-Showroom Price (₹)	Approx. Price Drop (₹)
Redditch (Base)	1,97,253	1,81,387	15,866
Heritage	2,03,813	1,87,489	16,324
Heritage Premium	2,08,415	1,91,723	16,692
Chrome (Top Variant)	2,34,972	2,16,196	18,776

Prices are ex-showroom Delhi and may vary by location.

What About the On-Road Price of Classic 350 in 2025?

The on-road price includes ex-showroom price, road tax, and insurance. With the GST cut:

• Ex-showroom price decreases, lowering the base cost.

• Road tax is a percentage of ex-showroom price and thus reduces.

• Insurance premiums drop as the insured declared value (IDV) is based on the bike price.

For example, in Kochi, the Classic 350’s on-road price is currently around ₹2,38,430, which will decrease proportionally with the GST cut, making the iconic bike more accessible.

Why This GST Cut Matters for Royal Enfield and Riders

• It boosts affordability for first-time and budget-conscious buyers.

• Reinforces Royal Enfield’s position in the mid-size motorcycle market.

• Encourages higher sales and market penetration amid growing competition.

• Aligns with government policy to promote growth in the sub-350cc segment, which is critical for exports and manufacturing.

Quick Summary: Royal Enfield 350cc Bikes GST Price Impact

Model	Engine	Old GST Rate	New GST Rate	Approx. Price Drop (₹)
Classic 350	349cc	28%	18%	Up to ₹20,000
Hunter 350	349cc	28%	18%	₹17,000 - ₹22,000
Bullet 350	349cc	28%	18%	Around ₹20,000
Meteor 350	349cc	28%	18%	₹16,000 - ₹19,000
Goan Classic 350	349cc	28%	18%	₹18,000 - ₹19,000

Note: Price cuts effective post September 22, 2025.

Conclusion

The Royal Enfield Classic 350 GST rate cut in 2025 significantly lowers the purchase price of this beloved motorcycle, making it more accessible to a wider audience. This tax reform not only benefits consumers but also strengthens Royal Enfield’s competitive edge in the mid-size bike segment. For those looking to embrace the legacy, now is an ideal time to make the Classic 350 their own.

FAQs: Royal Enfield Classic 350 GST Rate 2025

Q1: When will the new GST rate for Classic 350 come into effect?The reduced GST rate of 18% on motorcycles up to 350cc applies from September 22, 2025, lowering prices accordingly.

Q2: How much is the price reduction on the Classic 350 due to GST changes?Prices have dropped by up to ₹20,000 across various Classic 350 variants thanks to the GST cut.

Q3: Will the on-road price also decrease with the GST rate change?Yes, the reduction in ex-showroom price leads to a corresponding drop in road tax and insurance premium, reducing the overall on-road cost.