TL;DR
Bajaj and KTM are launching new 350cc motorcycles this month, like the Pulsar NS350Z and Dominar 350, to benefit from lower GST rates for bikes under 350cc.
Both Bajaj and KTM are set to introduce new 350cc motorcycles this month, a strategic move influenced by India's recently revised Goods and Services Tax (GST) structure. The new tax regime, implemented in September last year, levies an 18% GST on two-wheelers with engine capacities up to 350cc, while higher-capacity models attract a significantly higher 40% tax. This substantial difference in taxation has prompted manufacturers to adjust their product strategies.
Bajaj is expected to launch the Pulsar NS350Z and Dominar 350 by mid-April, which are anticipated to retain the successful design, features, and positioning of their 400cc counterparts but with downsized engines. Similarly, KTM's 390 Duke, Adventure 390, and RC 390 models were also impacted by the GST revision. Both companies had previously absorbed the additional costs of their larger-capacity models but are now responding with new offerings that qualify for the lower tax bracket, aiming to maintain competitive pricing.
