Post GST Revision, Royal Enfield Reports Faster Recovery in 650cc Than 450cc
Eicher Motors reported an improvement in demand for its higher-capacity motorcycles post-GST disruptions, with the 650cc segment recovering faster than the 450cc range. Despite this progress, sales have not yet returned to pre-GST levels. B. Govindarajan, the Managing Director, emphasized that while volumes are rising, they are still below previous figures.
Post GST Revision, Royal Enfield Reports Faster Recovery in 650cc Than 450cc
Eicher Motors said demand for its higher-capacity motorcycles is improving after the disruption caused by the GST rate change. The company noted that recovery in the 650cc range is ahead of the 450cc segment, though volumes have not yet returned to earlier levels.
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Speaking during the earnings call, B. Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of Royal Enfield , said the market saw a sharp drop in volumes for motorcycles above 350cc following the GST adjustment and the pre-buy that took place earlier.
“That’s why I said the rate of recovery is better. Have we come to the same level as the earlier time pre-GST level? No. But are we seeing the traction that we are reaching there? Yes. 650 is faster and 450 is following that,” he said.
Pace of recovery
The company said enquiries and conversions have improved in recent months. According to management, the 650cc motorcycles are witnessing a faster rebound, while the 450cc range is also moving upward but at a slower pace.
Current position versus pre-GST levels
Management clarified that volumes have not yet reached the levels seen before the tax change. However, it added that the direction of demand indicates gradual movement toward those numbers.
What it means
The company indicated that while the gap with earlier volumes remains, the improving trend in bookings and customer interest suggests gradual normalisation if the current momentum continues.
Royal Enfield January 2026 Sales
Royal Enfield sold 1,04,322 motorcycles in January 2026, up 14% from 91,132 units a year earlier. Domestic sales stood at 93,781 units, a rise of 16% compared with 81,052 units in January 2025. Exports were 10,541 units, up 5% from 10,080 units last year.
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