Bajaj Auto is readying a slew of products under the KTM and Triumph brands, which will sport smaller engines to help benefit from the cut in Goods and Services Tax (GST) announced two months ago.
The GST rate cut of 10 percentage point to 18 percent, which came into effect from September 22, 2025, favours only those two-wheelers that have engines of up to 350cc. All others fall in the highest tax bracket of 40 percent.
While this latest division of GST favoured the mid-capacity motorcycle market leader Royal Enfield, as more than 85 percent of its sales are derived from such models, models of other manufacturers like KTM, Triumph and Harley-Davidson, produced by Bajaj Auto and Hero MotorCorp, found themselves on the wrong side of the divide.
Models of KTM, including 390 Duke, RC 390, 390 Adventure, 390 Enduro, and the entire range of Triumph, which includes Thruxton, Speed and Scrambler, are powered by a 400cc engine. Due to the 50cc difference, these models attract 40 percent GST, even as the Royal Enfield range, including the popular Classic series with a 350cc engine, attracts only 18 percent GST.
Rakesh Sharma, Executive Director, Bajaj Auto said, “The GST rate cut saw some of the KTM and all Triumph models on the wrong side of the 350cc divide. However, we maintain prices absorbing the increase. Both brands benefited a lot from the customer’s desires to upgrade to aspirational purchases triggered by the GST cuts.”
“However, we are also working along with our partners KTM and Triumph on reshaping our portfolio to take advantage of the lower GST rate. These products will be launched in due course. The work on it is going on at feverish pace,” Sharma added.
Triumph and KTM together sold over 30,000 units during the September quarter, reporting an all-time high growth of 30 percent.
“With the launch of the Duke 160, we now take aim at the large and lucrative 150cc super premium segment. With the combination of KTM Adventure and Triumph Scrambler, we are now challenging leadership in the growing and lucrative Adventure segment,” Sharma added.
Bajaj also has a few models of its own – Pulsar NS400z, Dominar 400 - that fall under the 40 percent GST slab. They too are expected to see changes done to their engines to help them qualify for the lower tax rate.
A reduction of around 25cc to 50cc in engine displacement will most likely lead to a drop in peak power delivery as well. As these bikes, especially the KTM range, are known for performance, Bajaj will have to address the challenge of maintaining the performance attributes of the products while addressing the GST benefit.
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