Bajaj Auto is reportedly re-engineering its mid-capacity motorcycle lineup to bring several key models under the 350cc threshold. This strategic shift, affecting the Pulsar, Dominar, KTM, and Triumph ranges, is a direct response to India’s revised Goods and Services Tax (GST) structure, which currently penalizes motorcycles with displacements exceeding 350cc.
The Taxation Catalyst
The automotive industry has seen a divergence in growth following recent tax amendments. Motorcycles with engines smaller than 350cc now benefit from a reduced GST rate of 18%, down from 28%, fueling double-digit year-on-year growth for many manufacturers. In contrast, motorcycles above the 350cc mark are now subject to a 40% total tax (28% GST plus a 12% cess), a sharp increase from the previous 31% cumulative rate. While Bajaj has managed to maintain current pricing by absorbing these costs, the development of a sub-350cc engine platform is viewed as a necessary long-term fiscal correction.
Engineering and Performance Adjustments
To meet the new displacement targets, Bajaj is expected to modify the existing 373.3cc liquid-cooled, single-cylinder engine used in the Dominar 400 and Pulsar NS400Z. Engineering sources suggest the company will retain the engine’s current stroke while reducing the bore to achieve a displacement of just under 350cc. Key performance metrics for the current 400cc platform include:
- Pulsar NS400Z: 43 PS power and 35 Nm torque
- Dominar 400: 40 PS power and 35 Nm torque
- Current Pricing: Rs 1.94 lakh (Pulsar) and Rs 2.40 lakh (Dominar)
Although the displacement reduction will likely result in lower peak power and torque figures, the manufacturer aims to retune the engines to ensure that real-world performance and rideability remain consistent with consumer expectations.
Impact on KTM and Triumph Partnerships
The downsizing strategy is expected to extend to Bajaj’s premium partnerships. The company is currently evaluating the feasibility of 350cc variants for the KTM 390 range and the Triumph 400 series. These collaborations are vital to Bajaj’s bottom line, having contributed more than 30,000 units to the company’s total sales in the third quarter of FY 2025-26. While the Pulsar NS400Z is expected to carry over most of its existing hardware, the upcoming Dominar 350 may feature updated styling, new color palettes, and an enhanced suite of electronic rider aids. A formal launch timeline has not been finalized, though the new range is expected to debut in the coming months.
