Bajaj Auto, along with its global partners KTM and Triumph, is planning a new range of motorcycles under 350 cc. The move comes after the government raised GST on bikes above 350 cc from 28% to 40%, making mid-size bikes more expensive. Bikes under 350 cc now attract 18% GST, creating a strong incentive for manufacturers to focus on smaller engines.
During Bajaj’s Q2 FY26 analyst call, Executive Director Rakesh Sharma said the GST change affected some of the company’s popular KTM and Triumph models. “These models were on the wrong side of the 350 cc limit, but we kept prices steady and absorbed the GST increase. Customers appreciated this support during the festival season,” he said.
Despite the tax changes, Bajaj’s Pro-Biking division, which includes KTM and Triumph, had a record-breaking quarter, selling over 30,000 bikes—a 30% increase compared to last year. Revenue for the company reached nearly ₹15,000 crore, with profits of around ₹2,500 crore and a strong EBITDA margin of 20.5%.
The new plan will see Bajaj, KTM, and Triumph develop motorcycles in the 300–350 cc range. These bikes aim to combine the performance and design of premium brands with lower prices under the 18% GST bracket. Analysts expect the upcoming models to compete directly with popular bikes like the Royal Enfield Classic 350 and Honda CB350.
Sharma said the co-development program is already underway. “We are reshaping our portfolio to take full advantage of lower GST rates, and these new models will launch soon,” he added. The company aims to maintain aspirational performance while making bikes more affordable for customers.
By absorbing the GST increase on current models, Bajaj ensured that the KTM 390 series and Triumph 400 range continued to sell well during the festive period. This strategy showed the company’s ability to stay strong even amid rising costs and changing tax rules.
With these plans, Bajaj Auto and its partners hope to remain competitive, offering high-performance bikes that are easier on buyers’ pockets, while tapping into India’s growing mid-size motorcycle market.
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