Key highlights
- Bajaj Auto confirms development of sub-350 cc engines for its KTM & Triumph motorcycle partnerships.
- Aim is to benefit from India’s lower 18 % GST slab for bikes up to 350 cc and maintain competitive pricing.
- New engine plans reportedly derive from existing 399 cc platforms with reduced bore to bring displacement under 350 cc.
Bajaj Auto is getting ready to reshape its mid-capacity motorcycle strategy. The company confirmed it is working with its partners, KTM and Triumph, to develop smaller-capacity engines for upcoming models. The move follows India’s revised GST structure that favours bikes under 350 cc.
At a recent analyst call, Bajaj’s Executive Director Rakesh Sharma said the business is actively “reshaping our portfolio to take advantage of the lower GST rates.” The intention is clear: bikes that fall under the 350 cc cap will attract 18 % GST compared to 40 % for larger displacements.
Early reports suggest the new engines will be derived from the current 399 cc units found in KTM and Triumph models. The plan is to reduce the bore and tweak tuning so that displacement drops below 350 cc. This will likely mean slightly lower peak output but a sharper value proposition.
Why this matters
The 300–350 cc segment is heating up fast. With the GST advantage and rising buyer interest, brands are scrambling to align their product portfolios. By introducing sub-350 cc variants, Bajaj along with KTM and Triumph can retain aspirational branding while improving access and affordability.
For buyers, this means more choice. If a performance-brand model can now cost nearly the same as lower-displacement bikes, the value equation changes. On the flip side, riding purists might wrinkle their noses at slightly lower numbers, but if the handling and build quality remain premium, it may not matter.
What might be next
Expect launch announcements through FY26 and FY27. The new engine project covers both KTM and Triumph models in India, and possibly exports too. While exact timing isn’t confirmed, signals from Bajaj point to a launch window in the “near course”.
Premium models that currently sit just above 350 cc will be most affected. Brands may still continue their existing engine lines but layer in sub-350 cc options to attract tax-sensitive buyers.
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