The Royal Enfield Classic 350 remains one of India’s most popular motorcycles, known for its timeless design and thumping engine. When you purchase a new vehicle, the price you pay includes several taxes and charges, with Goods and Services Tax (GST) being a significant component.
Here’s a hypothetical breakdown of how GST and other charges might affect the on-road price of a Royal Enfield Classic 350 in September 2025:
Also Read: GST Hike Coming for 350cc Bikes? Royal Enfield, KTM, Triumph May Get More Expensive
1. Ex-Showroom Price Components:
The ex-showroom price is the price at which the vehicle is sold by the dealer, excluding registration, insurance, and road tax. It primarily includes:
- Manufacturing Cost + Manufacturer’s Profit: This is the base cost of producing the motorcycle.
- Dealer Margin: The profit margin for the dealership.
- GST (Goods and Services Tax): This is the central tax levied on the supply of goods and services. For motorcycles with an engine capacity above 350cc, the GST rate is typically higher. However, the Classic 350 falls below 350cc, so it generally attracts a lower combined GST rate.
- Current GST Rate for Motorcycles (below 350cc):
- Basic GST: 28%
- Cess: 1% (for motorcycles below 350cc)
- Total Effective GST: 29%
- For comparison, bikes above 350cc typically have a 3% cess, leading to a 31% effective GST.
- Current GST Rate for Motorcycles (below 350cc):
Let’s assume a hypothetical Ex-showroom price for a base model Royal Enfield Classic 350 in September 2025.
Hypothetical Ex-Showroom Price Calculation (Illustrative – September 2025):
- Assumed Base Price (before GST): ₹1,40,000 (This is the price after manufacturer’s profit and dealer margin, but before GST)
- Add GST @ 29% (28% GST + 1% Cess): ₹1,40,000 x 29% = ₹40,600
- Hypothetical Ex-Showroom Price: ₹1,40,000 + ₹40,600 = ₹1,80,600
2. On-Road Price Components:
The on-road price is the final price you pay to drive the motorcycle out of the showroom. It includes the ex-showroom price plus:
- Registration Charges: This is a state-specific tax levied for registering the vehicle with the Regional Transport Office (RTO). It includes the road tax and other RTO fees. This varies significantly from state to state and even within different cities of the same state. It’s usually a percentage of the ex-showroom price.
- Example (Illustrative): If RTO charges are 8% of the ex-showroom price: ₹1,80,600 x 8% = ₹14,448
- Insurance Premium: Mandatory third-party insurance, and typically comprehensive insurance, is required. This depends on the Insured Declared Value (IDV) of the bike, your location, and the type of coverage chosen.
- Example (Illustrative): Comprehensive insurance premium: ₹12,000
- Handling/Logistics Charges: Some dealerships might include nominal handling or logistics charges, though these are often debated and can be negotiable or already part of the ex-showroom price.
- Example (Illustrative): ₹1,500
Putting It All Together: Hypothetical On-Road Price (Illustrative – September 2025):
- Hypothetical Ex-Showroom Price: ₹1,80,600
- Add RTO / Road Tax & Registration: ₹14,448
- Add Insurance Premium: ₹12,000
- Add Handling/Logistics Charges: ₹1,500
- Estimated On-Road Price: ₹1,80,600 + ₹14,448 + ₹12,000 + ₹1,500 = ₹2,08,548
Summary Table (Illustrative for September 2025):
| Component | Estimated Amount (₹) |
| Base Price (before GST) | 1,40,000 |
| GST @ 29% (28% GST + 1% Cess) | 40,600 |
| Ex-Showroom Price | 1,80,600 |
| RTO / Road Tax & Registration | 14,448 |
| Insurance Premium | 12,000 |
| Handling/Logistics Charges | 1,500 |
| Estimated On-Road Price | 2,08,548 |
Key Takeaways for September 2025:
- The 29% effective GST (28% GST + 1% Cess) is a substantial part of the ex-showroom price for the Royal Enfield Classic 350.
- State-specific RTO charges and insurance premiums are the primary factors that cause the on-road price to vary significantly across different locations.
- Always ask for a detailed price breakup from your dealer to understand all charges involved.
For the most accurate pricing, it’s highly recommended to visit a Royal Enfield dealership closer to September 2025, as prices are subject to change.
