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.
What happened
Bajaj Auto · 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,
Key facts
- 18.3% growth sub-350cc
- 1.2% growth 350cc+
- 15.4% YoY April decline
- GST 18% vs 40%
- 349cc downsized engines
Why this matters
Scout bolt-on targets with sub-350cc engineering IP or platform flexibility, and revisit any pending 350cc+ deals where valuations haven't yet adjusted to the structural tax-driven demand split.