Royal Enfield to pass mild GST benefits to customers

Royal Enfield had dropped prices across its range by Rs 1,700 effectively from 17 June 2017.  This time around, reports indicate that ahead of GST implementation from 1 July 2017, the Indian two-wheeler manufacturer has reduced the on-road prices of its models up to Rs 2,300 on-road in Chennai. As revealed to media, the slab for reduction will be between Rs 1,600 to Rs 2,300 on-road in Chennai and will vary from state to state.

Although dealers in Mumbai are currently offering a flat discount of Rs 1,700 across models, the additional revised benefits will be known in a couple of days. It is worth noting that due to long waiting period of up to six months on popular selling models like the Classic 350 and the Bullet ES, the revised price, if any, at the time of delivery will be applicable. This means that irrespective of the revisions or offers being announced at the time of booking, it might not be applicable at the time of delivery, especially on models with a long waiting period. Recently, UM Motorcycles had reduced the prices for the Renegade Sports S and Renegade Commando by Rs 4,199 and Rs 5,684 respectively. In Mumbai alone, the post-revision on-road prices for the Sports S and the Commando has dropped by Rs 9,000 and Rs 8,000 respectively. Compared to UM Motorcycle, Royal Enfield does appear to offer mild GST benefits to customers.    

Under GST, a majority of two wheelers will soon attract a tax rate of 28 per cent as against the current 30 per cent. However, bikes over the 350cc segment will attract an additional cess of three per cent which takes the total tax to 31 per cent. The company officials had however indicated that we can expect a drop in prices across most models. More details on the new GST prices will be known over the next few days.      

For now, Royal Enfield has avoided offering major discounts on its popular models like the Classic 350 and the Bullet ES, as they are powered by a 346cc engine. This also explains why the manufacturer has not been offering major discounts on its bikes yet, as they don’t come under the higher tax bracket. As for Royal Enfield bikes over 350cc, we expect to see some considerable price differences. Click HERE to understand how GST affects a motorcycle buyer.