News
November 23, 2025
Royal Enfield Boosts 350cc Production After GST Cut Triggers Big Demand Surge - Details Inside
Royal Enfield is increasing production of its 350cc motorcycles after the GST cut boosted customer interest and conversions. Demand for 350cc models now surpasses the 450cc and 650cc range. The company has expanded capacity to 1.35 million units and is adding a new Cheyyar facility module to meet future festive and market demand.
Royal Enfield, the iconic Indian motorcycle manufacturer, is ramping up production of its popular 350cc range in response to a significant surge in demand. The company attributes this increase in customer interest and sales conversions to the recent Goods and Services Tax (GST) cut on motorcycles, making the already accessible 350cc models even more attractive to a wider audience.
Sources within Royal Enfield confirm that demand for the 350cc motorcycles, known for their classic styling and reliable performance, has now outstripped that of their larger 450cc and 650cc counterparts. This shift highlights the growing preference for affordable and fuel-efficient options amongst Indian riders, particularly in the current economic climate.
To cater to this burgeoning demand, Royal Enfield has significantly expanded its production capacity. The company has already increased its overall capacity to an impressive 1.35 million units annually. But the expansion doesn’t stop there. Royal Enfield is proactively adding a new module to its existing manufacturing facility in Cheyyar, Tamil Nadu. This strategic move is designed to ensure the company can effectively meet the anticipated surge in demand during the upcoming festive season and beyond.
Industry analysts believe that the GST reduction has played a pivotal role in making motorcycles more affordable for the average consumer. This, combined with Royal Enfield's strong brand reputation and the inherent appeal of its 350cc models, has created a perfect storm of demand.
The added production capacity at the Cheyyar facility will not only help Royal Enfield fulfill current orders but will also position the company favorably for future growth in the competitive Indian motorcycle market. The company remains committed to delivering its signature blend of classic design and modern engineering to riders across the country. The focus on expanding 350cc production underscores Royal Enfield's dedication to meeting the evolving needs and preferences of its customer base.
Sources within Royal Enfield confirm that demand for the 350cc motorcycles, known for their classic styling and reliable performance, has now outstripped that of their larger 450cc and 650cc counterparts. This shift highlights the growing preference for affordable and fuel-efficient options amongst Indian riders, particularly in the current economic climate.
To cater to this burgeoning demand, Royal Enfield has significantly expanded its production capacity. The company has already increased its overall capacity to an impressive 1.35 million units annually. But the expansion doesn’t stop there. Royal Enfield is proactively adding a new module to its existing manufacturing facility in Cheyyar, Tamil Nadu. This strategic move is designed to ensure the company can effectively meet the anticipated surge in demand during the upcoming festive season and beyond.
Industry analysts believe that the GST reduction has played a pivotal role in making motorcycles more affordable for the average consumer. This, combined with Royal Enfield's strong brand reputation and the inherent appeal of its 350cc models, has created a perfect storm of demand.
The added production capacity at the Cheyyar facility will not only help Royal Enfield fulfill current orders but will also position the company favorably for future growth in the competitive Indian motorcycle market. The company remains committed to delivering its signature blend of classic design and modern engineering to riders across the country. The focus on expanding 350cc production underscores Royal Enfield's dedication to meeting the evolving needs and preferences of its customer base.
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