Bajaj-Triumph to Rework Strategy: New 350cc Bikes Expected Within a Year Amidst Higher GST!
The strategic partnership between Bajaj and Triumph brought us an exciting 400cc portfolio, including the Speed 400, Speed T4, Scrambler 400X, and Thruxton 400, acting as an accessible entry point into Triumph’s rich motorcycling heritage. However, the recently introduced GST 2.0 reforms are set to significantly impact these models, with a higher 40% tax slab now applicable to motorcycles above 350cc. This new tax structure is forcing Bajaj-Triumph to drastically realign its strategy, with strong indications of a new 350cc portfolio launching within a year.
GST 2.0 Reforms: A Blow to the 350cc+ Segment
While many sectors rejoice over reduced GST tax slabs under the new reforms (even luxury car buyers are seeing massive reductions of over ₹30 lakh), two-wheeler buyers aspiring for motorcycles or scooters with displacements above 350cc have been hit hard. These vehicles now fall under a higher 40% tax slab, classified by the Indian Government as “Sin and Luxury” products. This move has drawn criticism from industry leaders like Rajiv Bajaj, MD and CEO of Bajaj Auto, who argues that the segment contributes a mere 1% to 2% of total motorcycle sales, making the increased GST unlikely to significantly boost collections.
Bajaj-Triumph’s Strategic Pivot to 350cc
To steer clear of this higher tax slab, Bajaj has indicated a realignment of much of its portfolio to sit below the 350cc displacement mark. This move is particularly critical for Triumph, which, unlike Bajaj and KTM, currently lacks lower displacement motorcycles in India. The current 400cc bikes may be “ported over” to this new 350cc engine. The new 350cc Bajaj-Triumph engine is likely to be a re-worked version of the existing 399cc block, possibly employing a shorter stroke or reduced bore to bring down the total displacement.
Uncertainty Around Exports and Other Brands
There is currently less clarity regarding the export strategy for these single-cylinder Triumph motorcycles. Triumph might continue to export its higher displacement 400cc portfolio to global markets while limiting the 350cc range exclusively to India, or both 400cc and 350cc models might be exported. It’s also uncertain if Bajaj and KTM will follow suit by spawning sub-350cc versions of their Pulsar NS400Z or 390 lineup. The 350cc to 500cc segment was already facing sales challenges, and this new 40% GST slab is undoubtedly adding to its woes. The industry awaits further clarity on potential changes from the Indian Government.
Also Read – Skoda & Volkswagen August 2025 Sales: Kylaq Shines Amidst Market Slowdown, VW Faces Declines
