Archive · 24 Nov 2025
Royal Enfield Boosts 350cc Production Amidst GST-Driven Demand Surge
Royal Enfield is making more of its 350cc motorcycles because the government lowered the tax on them, making them cheaper.
People are buying more of these bikes, so the company is expanding its factory to keep up with the demand.
Other models like the 450cc and 650cc bikes are also selling more, but not as much as the 350cc ones.
Royal Enfield increases production capacity for 350cc models due to GST-induced demand surge
Enquiry-to-booking conversion rate improves to 29-30% from 20-21% earlier
Company starts construction of new production module at Cheyyar facility
350cc models, including Classic 350, Bullet 350, Meteor 350, Hunter 350, and Goan Classic, drive growth
450cc and 650cc models see slower growth due to higher tax brackets
- Who
- Royal Enfield
- What
- Increased production of 350cc motorcycles
- When
- After GST reduction in Q2 FY26
- Where
- India
- Why
- To meet increased demand due to GST reduction
Supporters of GST Reduction
Opponents of GST Reduction
Tax Burden
Supporters of GST Reduction
GST reduction makes motorcycles more affordable
Opponents of GST Reduction
GST reduction may lead to revenue loss for the government
- GST Reduction
- Reduced GST on motorcycles under 350cc
- Old Production Capacity
- Around 1.2 million units per year
- New Production Capacity
- 1.3-1.35 million units per year
- New Production Module
- Expected to be operational in Q1 of next financial year
- 350cc Models
- Classic 350, Bullet 350, Meteor 350, Hunter 350, Goan Classic
