Bajaj plans sub-350cc KTM & Triumph models to benefit from new GST policy
Bajaj Auto has officially confirmed that it is working on smaller-capacity KTM and Triumph motorcycles for the Indian market. The move follows the recent Goods and Services Tax (GST) restructuring, which introduced a lower 18 percent rate for bikes under 350cc, compared to 40 percent for higher-capacity models.
The decision marks a strategic shift for Bajaj and its international partners, KTM and Triumph, as they aim to realign their motorcycle range to take advantage of the new tax benefits. According to the company’s latest quarterly report, Bajaj has already begun adapting its lineup to meet the revised displacement threshold.
This adjustment comes at a time when Bajaj’s premium Pro-Biking division has achieved record sales – over 30,000 units sold in the last quarter, representing a 30 percent increase from the previous year. The company credits this growth to strong customer demand despite maintaining prices after the GST changes.
The upcoming engines for KTM and Triumph are expected to be derived from their existing 400cc platforms but will feature a slightly smaller bore, bringing the displacement below 350cc. This downsizing is likely to reduce power output by around 3-5 HP. For comparison, the current Triumph Speed 400 produces 40 HP and 37.5 Nm, while the KTM 390 Duke generates 46 HP and 39 Nm.
While this reduction may have limited impact on Triumph, which doesn’t have smaller models in its lineup, KTM may face a challenge ensuring its new sub-350cc motorcycles still deliver the strong performance that defines its 390 range. The smaller engines could bring the new models closer in performance to KTM’s existing 250cc lineup, potentially creating overlap within the brand’s portfolio.
Bajaj’s own 400cc models, including the Dominar 400 and Pulsar NS400Z, are also expected to move to sub-350cc configurations in the future. However, the company has not yet confirmed when these revised models will launch or how long it will continue current pricing for its 400cc range.
For buyers interested in the current 400cc motorcycles, it may be worth acting soon before the upcoming displacement shift changes the lineup and performance balance.
