India’s two-wheeler giant Bajaj Auto is once again reshaping the performance bike segment. The company has officially confirmed that it is developing a new range of sub-350cc motorcycles in collaboration with KTM and Triumph.
This move is not just a technical change it’s a smart response to India’s latest GST tax policy, which now offers lower taxes for bikes below 350cc engine capacity.
Why Bajaj Is Moving Below 350cc
In September 2024, the Indian government revised the GST structure for motorcycles. According to the new rule, all bikes with engine capacity under 350cc now fall under a reduced 18% GST slab, while bikes above that limit attract higher taxes.
Most of Bajaj’s premium bikes like the KTM 390 Duke, Triumph Speed 400, and Pulsar NS400Z currently exceed that limit. To keep prices competitive, Bajaj has decided to re-engineer its upcoming models to stay within the 350cc threshold while still offering strong performance.
Expected Changes in the New Engines
Bajaj and its partners are likely working on downsized versions of their current 399cc engines.
This means the new sub-350cc engines will offer slightly lower power around 3 to 5 horsepower less but will benefit from better pricing and higher fuel efficiency.
For instance:
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The current KTM 390 Duke delivers around 46 hp. The upcoming 349cc version may produce around 41-42 hp, still keeping it among the most powerful bikes in its class.
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The Triumph Speed 400, which currently makes about 40 hp, could be tuned to around 36-37 hp while maintaining its strong mid-range torque and rideability.
Bajaj’s Strategy Behind the Move
This decision shows how Bajaj Auto is balancing performance with affordability. The sub-350cc range will allow KTM and Triumph bikes to stay more accessible to Indian riders — a key factor in a price-sensitive market.
- By staying under 350cc, Bajaj can:
- Avoid higher taxes under the new GST structure
- Keep showroom prices attractive without cutting profits
- Continue offering “premium-feel” motorcycles with lower running costs
Essentially, this is a smart tax-efficient move that benefits both the manufacturer and the customers.
Impact on Bajaj’s Current Line-Up
Sources suggest that Bajaj is not only reworking the KTM and Triumph models but may also update its own 400cc range, including:
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Dominar 400
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Pulsar NS400Z
These bikes could eventually adopt the same sub-350cc engines to align with the new GST category.
If that happens, buyers can expect slightly revised power outputs, improved mileage, and possibly even new model names to reflect the lower engine size.
How It Affects Buyers
For Indian motorcycle buyers, this transition could mean:
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More affordable premium bikes — thanks to the 18% GST rate.
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Better fuel economy and manageable performance for daily use.
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Slightly less top-end power, but improved accessibility and comfort.
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Fresh launches in 2025, as Bajaj and its partners complete development.
So, if you are planning to buy a 400cc-class motorcycle, you may soon get a new sub-350cc version that offers almost the same thrill — at a lower price tag.
Conclusion
Bajaj Auto’s decision to move below 350cc is a strategic masterstroke. It keeps the company aligned with government policies while ensuring that performance-bike lovers in India still have exciting, powerful, and affordable machines to choose from.
The coming year could mark a major shift in the Indian performance bike market — where power, price, and policy finally come together in perfect balance.