While GST on motorcycles up to 350cc has been reduced, the ones above 350cc will be taxed at a higher rate of 40%
Recent GST rate cuts, including reduced 18% tax for up to 350cc capacity motorcycles, have brought huge cheer among consumers. However, folks eyeing bigger bikes are disappointed, since the GST rate has been increased from 28% to 40%. Thankfully, some OEMs have decided to leave the prices unchanged and absorb the increased cost internally, instead of passing it on to customers. Relevant examples are 400cc Triumph and KTM bikes, which are manufactured in India by Bajaj. Let’s get more details on this development.
No price increase for India-made Triumph, KTM bikes
In the previous GST regime, motorcycles above 350cc were taxed at 31%, which included 28% GST and 3% Cess. This has now been changed to a flat rate of 40%. It was expected that prices of India-made Triumph and KTM bikes will be increased, as per the new GST rates. However, in a surprising move, Bajaj has decided to absorb the full cost of the GST rate hike for India-made Triumph and KTM bikes.
This move could boost sales, as prices of rival offerings have increased. For example, Royal Enfield Himalayan 450 is now available at a starting price of Rs 3.06 lakh. In comparison, the KTM 390 Adventure X price remains unchanged at Rs 3.04 lakh. Earlier, the Himalayan 450 was available at a starting price of Rs 2.85 lakh.
A similar pricing advantage can be seen for Triumph Speed 400 in comparison to Royal Enfield Guerrilla 450. With Bajaj deciding to absorb the increased GST cost, Triumph Speed 400 continues to be available at the earlier pricing of Rs 2.50 lakh. In comparison, the Royal Enfield Guerrilla 450 is now available at a starting price of Rs 2.56 lakh. It was earlier available at a starting price of Rs 2.39 lakh.
For folks who prioritize cost, the price advantage available with select Triumph and KTM bikes can influence decision-making. But it is unlikely to have any major impact, as this segment is often driven by brand preference. Moreover, Royal Enfield is unlikely to face any major impact since its 450cc portfolio contributes only a small percentage to the company’s overall sales.
Triumph, KTM bike prices
Talking about other Triumph bikes, the Speed T4 is available at a starting price of Rs 1.99 lakh. It is the most affordable Triumph bike in India. Triumph Scrambler 400 X is available at a starting price of Rs 2.68 lakh, whereas the Scrambler 400 XC costs Rs 2.95 lakh. Recently launched Thruxton 400 is available at a starting price of Rs 2.74 lakh.
Coming to KTM bikes, the 390 Duke is available at a starting price of Rs 2.97 lakh. KTM RC 390 has a price tag of Rs 3.23 lakh. Starting price of KTM 390 Adventure is Rs 3.68 lakh. KTM Enduro-R India-spec model is priced at Rs 3.39 lakh, whereas the global-spec version costs Rs 3.53 lakh. The latter differentiates itself with features such as longer suspension travel.
While Bajaj has decided to absorb the increased GST-linked cost of India-made Triumph and KTM bikes, the GST benefits for up to 350cc Bajaj and KTM bikes have been fully passed on to customers. Prices of these bikes have been reduced by up to Rs 20,000.
Source: Bike - rushlane.com
