In a significant move for motorcycle enthusiasts in India, Bajaj Auto, the parent company of popular brands Triumph and KTM, has announced that it will not increase the ex-showroom prices of its locally made motorcycles with engine capacities above 350cc. This decision comes despite the recent hike in Goods and Services Tax (GST) on motorcycles above 350cc from 28% to 40%, a move that many expected would lead to price increases across the industry.

The price freeze affects popular models such as the Triumph 400cc range, including the Speed T4, Speed 400, Scrambler 400, and Thruxton 400, as well as KTM’s 390cc lineup including the Duke 390, RC 390, and 390 Adventure. While the GST for these bikes was recently raised, Bajaj has chosen to absorb the additional tax rather than passing it on to customers. Alongside this, a 3% compensation cess on motorcycles over 350cc has been removed, helping keep the overall cost stable for buyers.

In contrast, models under 350cc such as KTM’s 160 Duke, 200 Duke, and 250 Duke are benefitting from a GST reduction from 28% to 18%, resulting in a direct price drop for these bikes, making KTM’s smaller and entry-level motorcycles more affordable.

Market Context and Consumer Impact

In the Indian market, the 300cc-400cc segment is seen as a popular aspirational upgrade from the entry-level motorcycles. Riders in this range often consider it a step up toward better performance and style without reaching the higher price brackets of premium bikes. Keeping prices steady in this segment is crucial for maintaining customer interest and market momentum.

By absorbing the GST hike cost, Bajaj is maintaining a competitive edge against rivals, particularly Royal Enfield, whose recent launches in the 450cc range come with higher price tags. For example, KTM’s 390 Adventure X is now more affordable than the Royal Enfield Himalayan 450, and the Triumph Speed 400 costs less than Royal Enfield's Guerrilla 450. This makes mid-capacity bikes from Triumph and KTM more accessible to middle-class buyers looking for performance motorcycles without a steep price increase.

Why Did Bajaj Make This Choice?

Several experts and industry insiders see Bajaj’s decision as strategic rather than purely generous. Absorbing the GST hike likely reduces profit margins for Bajaj but helps protect the brand’s aspired market share and long-term growth in India. By keeping prices stable despite tax increases, Bajaj minimizes customer hesitation amid broader economic uncertainties, especially during festive and sales seasons when demand is typically higher.

Furthermore, Bajaj’s Indian manufacturing footprint and export-oriented production model for Triumph and KTM suggest that reducing product quality is unlikely. These models are sold worldwide and carry reputations for their performance and build standards. Diluting quality risks damaging brand value and export potential, a loss greater than the short-term hit on profits.

What Are People Saying?

Public reactions have been largely positive, especially among motorcycle enthusiasts who see the price freeze as a relief in a market where rising costs have become a concern. Buyers looking forward to purchasing a KTM or Triumph in the 400cc range are excited by the possibility of owning premium motorcycles at stable prices amid inflationary pressures.

Some consumers have expressed cautious optimism, wondering how long this pricing policy will last and whether it might impact future product development or quality. Yet many appreciate the company’s commitment to keeping performance bikes accessible and see it as a sign that Bajaj values its customers' enthusiasm for motorcycling.

While the move is beneficial for buyers in the short term, it also raises questions about sustainability. Absorbing increased taxes means Bajaj is sharing the cost burden instead of passing it on. If GST rates remain elevated or increase further, Bajaj may need to reconsider prices or face reduced profitability. However, for now, this approach helps stabilize the motorcycle market segment between 350cc and 400cc, serving riders who aspire to own stylish, high-performance motorcycles without a hefty price hike.

The removal of the compensation cess and the price reductions in smaller KTM motorcycles signal a broader industry trend towards making motorcycling more affordable and competitive in India’s expanding two-wheeler market.

In summary, the decision by Bajaj Auto to keep prices unchanged on locally made Triumph and KTM motorcycles above 350cc is a customer-friendly move that benefits riders amid rising GST rates. It preserves market competitiveness, supports affordable access to premium motorcycles, and reflects a strategic balancing act between cost absorption and market growth. For India’s motorcycle buyers, especially the aspirational middle class, this means more choices without immediate price shocks, blending excitement with stability in an evolving market landscape.

With inputs from agencies

Image Source: Multiple agencies

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