With the GST 2.0 reforms introduced by the Government of India, the country is happy to see the prices of everything except sin and luxury items increasing. However, motorcycling enthusiasts have criticized the reform as the government has classified motorcycles with capacity above 350 cc under sin and luxury goods, which attract a higher 40% GST rate.
The move has impacted Bajaj Auto as the brand offers 350cc+ motorcycles under the Bajaj, KTM and Triumph brands. The company absorbed these higher taxes, but has vowed to downsize its engines to meet the 350cc displacement limit. Now, a recent report sheds more light on these developments. let’s take a closer look.
KTM 390 bikes will be sold along with the upcoming 350 models
The 390 range of motorcycles are some of the most popular and enthusiast offerings under the KTM brand. They offer thrill and performance while also being easy on the pocket. Bajaj will reportedly retain the KTM 390 range and they may continue sales with the upcoming 350cc range of motorcycles.
Popular 390 offerings like the 390 Duke and 390 Adventure will reportedly remain on sale, while other 390 offerings like the 390 Enduro and RC 390 may take the downsizing route to achieve the lower 18% GST tax slab. Bajaj may choose to take this route at least at the time of the launch of the upcoming 350cc range of KTM bikes.
Depending on customer feedback, Bajaj will choose to either discontinue or retain the 399cc single cylinder liquid cooled engine. Bajaj Auto has not yet confirmed whether a similar move will be implemented with their export operations or only the 390 range will continue to be exported.
Triumph, Bajaj 350cc only
While the KTM single-cylinder flagship will get two engine variants, Bajaj and Triumph, on the other hand, will only get the smaller 350cc engine. These include the Dominar 400 power cruiser and Pulsar NS400Z from Bajaj stables and the Speed 400, Scrambler 400 and Thruxton 400 from Triumph stables.
The upcoming Triumph Tracker will be sold only with the smaller 350cc engine option. With these upcoming 350 cc ranges from Bajaj, KTM and Triumph motorcycles, Bajaj Auto will achieve more attractive pricing and compete better with Royal Enfield’s 350 cc range of motorcycles as the current GST slab of 40% will be reduced to 18%.
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