Strategic Downsizing: Bajaj and Triumph to Launch 350cc Range to Navigate India’s Tax Reform
Bajaj Auto MD Rajiv Bajaj has confirmed the launch of new Triumph 350cc motorcycles in April 2026. This move bypasses India’s steep 40% GST on 350cc+ bikes, moving the range to an 18% tax slab for sharper pricing. Learn how the downsized 350cc engine impacts performance and the wider KTM and Dominar lineups.
The catalyst for this shift is the "GST 2.0" framework, which designates motorcycles with engine displacements exceeding 350cc as "luxury or sin goods," subjecting them to a steep 40% GST rate. By downsizing displacement to just under the 350cc threshold, Triumph and its manufacturing partner, Bajaj Auto, can slot these new models into the significantly more favorable 18% tax slab. This 22% tax differential is expected to result in retail price reductions of several thousand rupees, making the premium British brand far more accessible to price-sensitive Indian buyers.
Technically, the new 350cc platform will not be an entirely new development. Instead, it is engineered as a downsized iteration of the existing 399cc liquid-cooled, single-cylinder "TR-Series" engine currently powering the Speed 400 and Scrambler 400 X. Industry sources suggest the displacement reduction will likely be achieved through a smaller cylinder bore, while the core architecture remains intact to preserve Triumph's signature refinement. Consequently, riders can expect a minor reduction in performance, with peak output estimated to drop by 3–5 hp from the current 40 hp.
The "350cc strategy" is not restricted to the Triumph partnership. Bajaj Auto is expected to follow a similar blueprint for the KTM 390 series and its proprietary flagships, the Dominar 400 and Pulsar NS400Z. While specific timelines for these brands remain undisclosed, Bajaj has indicated that realigning the portfolio is essential to sustaining growth in a market where the 350cc–500cc segment has faced slowing demand due to rising costs.
Despite the domestic transition, Triumph will continue to manufacture the 400cc versions in India for global export markets, where the 350cc tax barrier does not apply. For the Indian enthusiast, the April launch marks a new era where regulatory compliance and high-performance engineering must strike a delicate balance. Whether these downsized "350s" can maintain the aspirational allure of their larger-capacity predecessors will be the ultimate test of the Bajaj-Triumph alliance.

Comment List