Royal Enfield Stocks Up Inventories To Avoid US Tariffs

US President, Donald Trump created quite the havoc worldwide after he announced a series of tariffs-import taxes on goods from other countries. The President's announcement was done to  boost American manufacturing and protect jobs, but has instead thrown the world economy into chaos, risking making products in the USA even more expensive than before. The auto industry has been hit in particular the most because Trump announced that all vehicles and auto components imported to America will attract 25 per cent import duty. He is adamant with this decision and has stated that it will not change during his tenure. As a reaction to this, while some auto manufacturers have decided to reroute its production, some have completely halted shipments. But Royal Enfield decided to export nearly 9,000 bikes to the country in very quick succession just before March (when Trump announced his decision), when the tariffs would kick in, reported a US-based publication.

This has helped the Indian retro-bike maker to stockpile its inventory in the North American market for at least a year at older rates. It will further allow RE to sell its 350 cc and 650 cc bikes at the affordable price point. 

(Also Read: US Trade Tariffs To Slow Indian Auto Component Industry Growth)

For reference, the Royal Enfield Classic 350 is sold in the USA priced at $4,699 (ex-showroom) which is equivalent to ₹4.01 lakh. The Royal Enfield Super Meteor 650 will set you back by $6,999 (ex-showroom) i.e. equivalent to ₹5.98 lakh, while the Himalayan 450 in Hanle Black with tubeless tyres will set you back by $6,099 (ex-showroom) which is equivalent to around ₹5.21 lakh. These are quite affordable prices in America, given RE’s 650 cc contemporary like the Kawasaki Z650 RS (a direct rival to the Interceptor 650 that costs $6849) costs $8,899 (ex-showroom price) which is equivalent to ₹7.61 lakh. 

While this is a win-win situation for Royal Enfield fans in the USA, in the long run, it might not save them from some uncertainties. This is because 9,000 bikes is way above the annual sales of RE in the region, as per the US publication. So, RE won’t need to export any more bikes for a longer duration. If the brand comes up with any updates to any of its existing models, like it did with the 2025 Hunter 350 – this bike isn’t reaching US shores at least for a year. Plus, it won’t be much of a sound business decision to pay a premium and further add to its inventory when it is already full.

(Source: RideApart)