Bajaj's Plans To Beat The GST Hike On 350cc Bikes: New Sub-350cc Bajajs And Triumphs Coming

The motorcycle market in India is set for major changes with new GST rules creating a clear divide at the 350cc level. From September 22, 2025, motorcycles above 350cc will attract 40% GST, up from the earlier 31% (28% GST plus 3% cess). Bikes below this limit will now be taxed at 18%, down from 28%.

Triumph Feels The Pinch First

Bajaj Auto and Triumph Motorcycles are adjusting their strategies to avoid the higher tax band. Rajiv Bajaj has confirmed that much of Bajaj’s line-up will be repositioned below 350cc.

The move will also cover Triumph, where every current India-built motorcycle starts at 400cc. Without changes, Triumph models would face steep price increases.

The Triumph Speed 400, Scrambler 400X, Speed T4, and Thruxton 400 are all above the cut-off and risk becoming significantly costlier. This makes a new 350cc platform critical for Triumph to remain competitive under the new tax regime.

Shrinking The Engine To 349cc

The technical fix involves downsizing the existing 399cc single-cylinder engine. Engineers are expected to reduce the bore from 89mm to around 83mm, while retaining the stroke.

This adjustment would bring displacement to 349cc. The revised engine would keep the same architecture but deliver less peak power, with gains in low and mid-range torque.

Industry estimates suggest that Triumph could roll out its first 350cc models within six to eight months, possibly by March 2026. Likely products include the Speed 350, Scrambler 350 X/XC, and a revised T4. At the same time, Triumph’s 400cc bikes may continue production in India for export markets, where the GST rules do not apply.

Bajaj Cuts Prices To Gain Ground

Bajaj has already acted by cutting prices on bikes that now benefit from lower GST. In Delhi, the Pulsar NS125 ABS and Pulsar N160 USD are cheaper by ₹12,206 and ₹15,759 respectively. The company has added festive schemes like its “Hattrick Offer” with zero processing fees and enhanced insurance to drive sales momentum.

This positions Bajaj strongly in the under-350cc segment, which makes up 98% of all two-wheeler sales. The company currently trails Hero MotoCorp and Honda, which together command over half of this market. Hero held a 28.68% share in August 2025, Honda 24.10%, while Bajaj had 11.15%. The revised GST rates and aggressive pricing could help Bajaj narrow this gap.

Royal Enfield On Both Sides Of The Divide

Royal Enfield faces mixed consequences. Its Classic 350, Meteor, Hunter, Goan Classic, and Bullet now benefit from lower GST, making them more affordable. However, its higher displacement models like the Himalayan 450, Guerrilla 450, Scram 440, and the entire 650cc line-up will become costlier under the 40% rate.

The timing of the tax change is also a factor. The new rules take effect just ahead of the festive buying season. Many customers may delay purchases until the lower rates apply, affecting September sales but likely boosting demand in October and November.

The 350cc Cut-Off Becomes The Battleground

The GST shift is set to permanently alter competition in the motorcycle industry. Companies with strong sub-350cc line-ups gain an edge, while those focused on larger bikes face tougher challenges. For Triumph and Bajaj, investing in a new 350cc platform is a direct response to policy, allowing them to safeguard volumes while aligning with market demand.

The 350cc boundary has become the key battleground. It now dictates not only how motorcycles are priced, but also how they are engineered. With taxation tied so closely to displacement, manufacturers will need to balance product design with fiscal rules as they plan their future portfolios.