GST 2.0 splits premium bike market: sub-350cc surges 18.3%, 350cc+ stalls at 1.2%
India's revised GST regime—18% for sub-350cc, 40% for 350cc+—is forcing OEMs to redraw product strategy. Bajaj, KTM and Triumph are downsizing engines below 350cc to dodge the higher levy, while Royal Enfield and Harley-Davidson face headwinds in the heavyweight tier. April premium volumes fell 15.4% YoY before the policy shift.
GST 2.0's 40% levy on 350cc+ bikes is reshaping India's premium motorcycle market. Sub-350cc sales grew 18.3% while 350cc+ grew just 1.2%. Bajaj, KTM and Triumph are downsizing engines below 350cc to qualify for 18% tax.