Bajaj–Triumph to introduce sub-350cc Bikes in April and offer more competitive pricing in India
Strategic Change in 350cc Segment
According to the new GST 2.0 taxation structure, bikes above 350cc will be charged a hefty 40% tax as they fall into the ultra-luxury or ‘sin goods’ segment. However, bikes with engine capacity below 350cc will be charged an 18% tax. This huge difference in taxation has forced manufacturers to change their strategies regarding their product offerings in the Indian market.
At present, Triumph Motorcycles offers the following models in India, which are locally manufactured: Speed 400, Speed T4, Scrambler 400X, and the newly launched Thruxton 400. All these models are based on a 399cc single-cylinder engine range.
With the new tax structure increasing costs, Bajaj Auto and Triumph have decided to realign their India portfolio below the 350cc mark to maintain competitive pricing.
The new line of 350cc bikes is expected to replace the current 400cc bikes in the Indian lineup. However, there has been no official word on discontinuing the 400cc variants altogether. It is expected that the 400cc variants of the bikes will continue to be produced in India for export to countries where the taxation system does not discriminate against bikes with larger engine capacities.
Engine and Performance Expectations
The new line of 350cc bikes is expected to be powered by the same engine platform as the current 399cc bikes. In order to reduce the engine displacement to below 350cc, the engineers are expected to decrease the bore size, possibly retaining the same stroke length. This will enable Triumph to retain the same engine design while simply changing its displacement.
Although the engine will retain the same foundation as the 400cc engine platform, it is expected to see a major overhaul. The engine is expected to be tuned to produce more low- to mid-range torque, making the bikes more suitable for city riding. This could also impart a slightly different riding experience to the bikes compared to the current 400cc variants.
With the level of differentiation already observed between the Speed 400 and Speed T4, it is likely that the 350cc lineup will also have different tuning and mechanical differences to ensure that each model retains its own identity in the lineup.
Pricing and Market Impact
One of the key reasons for the launch of the 350cc lineup is to ensure that the pricing is more competitive. With the new 18% GST rate, Triumph will be able to offer a lower ex-showroom price compared to the 400cc lineup, which is currently impacted by the higher rate of taxation.
According to Rajiv Bajaj, the 350cc+ category currently contributes only 1-2% to the overall motorcycle sales in the Indian market. The category was already witnessing sluggish growth, and the higher rate of taxation has further added to the woes of the manufacturers. By moving below the 350cc threshold, Bajaj and Triumph are trying to ensure that the growth in the premium entry-level segment is not impacted.
Future of the Bajaj-Triumph Collaboration
The launch of the 350cc lineup is a testament to the rapid evolution of the Bajaj-Triumph collaboration in response to the changes in regulations. Since the launch of the Speed 400 and Scrambler 400X, Triumph has established a strong foothold in the mid-capacity motorcycle market in India. The 350cc lineup is expected to further solidify its position in the market with more affordable pricing without sacrificing the premium feel.
Although the specifications, performance, and pricing details have not been announced, more details are expected to be shared in the coming weeks. The launch of the lineup in April will be a crucial milestone for Triumph in the Indian market, as the brand seeks to strike a balance between performance, brand, and affordability in the wake of the new GST regulations.
Through this strategic shift, Triumph is set to position itself in the ever-changing landscape of the Indian motorcycle market while continuing to cater to the global market with its existing 400cc lineup.
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