Monthly volumes have increased significantly after GST rates for bikes below 350 cc were reduced last year
After the GST rate for bikes below 350cc was reduced from 28% to 18%, almost all OEMs have been registering double-digit year-on-year growth in recent months. However, for bikes above 350cc, the GST rate has been increased to 40% from the earlier 31% (28% GST + 3% cess).
This has created challenges for budget-oriented customers, although OEMs like Bajaj have opted to absorb the increased costs. For permanent, long-term improvements, Bajaj is working on 350cc versions of its Pulsar, Dominar, KTM and Triumph bikes. Let’s see the details.
Bajaj 350cc Pulsar, Dominar
In their current format, the Bajaj Dominar 400 and Pulsar NS400Z use a 373.3 cc, single cylinder, liquid cooled engine. The torque output of 35 Nm is the same for both the bikes. Power output is 40 PS for the Dominar and 43 PS for the Pulsar NS400Z. In terms of monthly sales volumes, both these bikes may have a limited contribution to the overall sales of the brand.
However, this segment is expected to register strong growth in the future. With 350cc versions of the Dominar 400 and Pulsar NS400Z, a more accessible price point can be achieved. Pulsar NS400Z is currently available at a starting price of Rs 1.94 lakh. In comparison, the price of Dominar 400 is Rs 2.40 lakh.
The 350cc versions of the Dominar 400 and Pulsar NS400Z will likely use a modified version of the existing 373.3 cc engine. The bore can be reduced to achieve a target displacement of less than 350 cc, while maintaining the stroke. Although there will be some reduction in power and torque output, relevant changes will be introduced to ensure that the overall ride experience remains intact in most scenarios.
Apart from the revised engine, there are likely to be no other major changes. This is especially true for the Pulsar NS400Z. In the case of Dominar 400, Bajaj may introduce some additional changes. For example, the bike may get refreshed styling, colors and a greater number of electronic rider aids.
350cc KTM, Triumph Bikes
Bajaj recently revealed that it is working with KTM and Triumph to explore the possibility of launching 350cc versions of the KTM 390 range and Triumph 400 series bikes. If the project gets the green signal, the 350cc KTM and Triumph bikes could use the same 350cc engine as developed for the Dominar and Pulsar bikes.
The case is even stronger for 350cc KTM and Triumph bikes, as the current versions have recorded strong sales. Overall, the recent contribution to Bajaj’s total sales in Q3FY26 was more than 30,000 units. Since it may not be possible to absorb the increased GST cost in the long run, the 350cc may be among the priorities for KTM and Triumph Bajaj. Bajaj is expected to introduce its 350cc range in the coming months. However, no specific launch timeline has been provided.