By keeping prices unchanged despite GST hike, Bajaj ensures that enthusiasts’ festive season plans aren’t dampened
GST rate on bikes up to 350cc has been reduced to 18%. But larger capacity bikes will now be taxed at a higher rate of 40%. This would lead to an increased cost burden for enthusiasts who may be planning to buy bikes of more than 350cc displacement. However, folks eyeing Pulsar NS400Z or Dominar 400 need not worry. Since Bajaj has decided to absorb the full cost associated with the higher GST rate. Let’s check out the details.
Pulsar NS400Z, Dominar 400 – No price hike
Available at a starting price of Rs 1.93 lakh, Bajaj Pulsar NS400Z is one of the most affordable in its class. With the tax increased from 31% (28% GST + 3% Cess) to a flat GST rate of 40%, the effective increase for Pulsar NS400Z would be around Rs 13,000. However, with Bajaj absorbing the full cost of GST hike, the bike will continue to be available at the same price as earlier. Additionally, Bajaj may sweeten the deal further with special festive offers.
Dominar 400 will also continue to be available at the pre-GST price of Rs 2.39 lakh. While shielding customers from the increased GST rate, Bajaj’s decision can also help boost sales during the festive season. Bajaj bikes are known for their affordable pricing. The decision to absorb the increased cost will help sustain that positioning. While there is no official announcement about how long this offer will continue, it is likely to extend throughout the festive season.
Taking a look at Bajaj sales data, Pulsar NS400Z contributed 1,160 units in July 2025. That’s around 0.89% of the company’s total sales in the month. Dominar 400 sales in July were at 632 units, which is 0.49% of overall sales. In the 350cc to 450cc motorcycle segment, Pulsar NS400Z and Dominar 400 have market share of 1.36% and 0.74%, respectively. By absorbing the increased GST cost, Bajaj has ensured that sales momentum of these bikes remains unaffected.
Bajaj’s strategy for its India-made bikes
Bajaj has also decided to fully absorb the increased GST cost of India-made 400cc Triumph and KTM bikes. These have a bigger market share in the 350cc-450cc motorcycle segment. In July, Triumph 400 bikes and KTM 390 bikes registered sales of 3,538 units and 1,507 units, respectively. Market share is 4.15% and 1.77%, respectively. The total market share of 400cc Triumph, KTM, Pulsar and Dominar works out at around 8%. This is a figure well worth fighting for.
Some other bike manufacturers have also chosen to absorb the increased GST cost for their India-made bikes. Relevant examples include Aprilia RS 457 and Tuono 457, which will continue to be available at the same prices as earlier. Similarly, BSA Gold Star 650 will be available at pre-GST prices for the first 500 buyers.
It will be interesting to see if the GST Council revisits its decision on increasing the GST on 350cc+ displacement bikes. At a time when GST on luxury cars has been reduced from 50% to 40%, increasing GST on 350cc+ bikes from 28% to 40% has left thousands disappointed.
Source: Bike - rushlane.com
