During its Q2 FY26 analyst call, Bajaj Auto Ltd announced a partnership with KTM and Triumph to develop new motorcycles sized just under 350 cc. This move follows a revision in India’s GST rates: the tax for bikes up to 350 cc was lowered to 18 percent, while the levy on models over 350 cc was hiked to 40 percent. Bajaj’s Executive Director, Rakesh Sharma, confirmed the intent to “reshape our portfolio to take advantage of the lower GST rates.” The plan involves downsizing the 399 cc Triumph engine platform and creating similar sub-350 cc versions for KTM’s 390 series. This strategic shift aims to maintain affordability and competitiveness. Early reports suggest a 3-5 hp drop in output for the smaller models, which will still deliver strong performance. With development underway, the sub-350 cc segment is set to become the new battleground for premium performance bikes in India.
Bajaj Reworks KTM and Triumph Strategy for Sub-350cc Segment
Bajaj Auto is partnering with KTM and Triumph to develop new motorcycles sized just under 350 cc.
This strategic shift follows India’s revision of GST rates on two-wheelers: the tax on bikes up to 350 cc was lowered to 18 percent, while the levy on models over 350 cc was hiked to 40 percent.
Bajaj’s Executive Director, Rakesh Sharma, confirmed the company’s intention to “reshape our portfolio to take advantage of the lower GST rates” during the Q2 FY26 analyst call.
The plan involves:
- Downsizing the 399 cc Triumph engine platform.
- Creating similar sub-350 cc versions for KTM’s 390 series.
This move aims to retain affordability in the premium segment and maintain competitiveness against the tax increase. Early reports indicate these smaller displacement models will see a 3-5 hp drop in output but will still deliver premium performance.
The sub-350 cc category is now set to become the new battleground for premium performance bikes in the Indian two-wheeler market.
