Bajaj Auto will continue retailing KTM 390cc models like the Duke, Adventure, and RC alongside upcoming 350cc versions for several months, allowing customers to compare options. This follows India's September 2025 GST reforms, which cut taxes to 18% for bikes up to 350cc (from 28%) while raising them to 40% (from 31%) for larger engines, announced by CEO Rajiv Bajaj in early March 2026.
In early March 2026, Bajaj Auto announced that its KTM 390 lineup—including the 399cc Duke, Adventure, and RC (373cc) variants—will remain on sale in India even after new 350cc models launch by April 2026. CEO and MD Rajiv Bajaj confirmed the strategy, which also applies to 350cc versions of the Dominar 400 and Pulsar NS400Z, enabling buyers to assess downsized engines against established larger-displacement options known for performance and value.
The decision responds to India's GST 2.0 reforms in September 2025, reducing the rate on motorcycles up to 350cc from 28% to 18%—lowering prices for models like KTM's 160cc and 250cc bikes—while imposing 40% (up from 31%) on those exceeding 350cc, making 390cc models costlier. Bajaj aims to gauge customer response before long-term decisions, with 399cc production continuing for export demand.
Unlike KTM, Triumph's made-in-India 400cc lineup—including the Scrambler 400X, Thruxton 400, and Speed T4—will shift fully to 350cc equivalents without parallel sales, as Triumph lacks sub-350cc models and faces greater tax impacts. The Triumph Tracker 400, unveiled globally in December 2025, will launch in India as a 350cc bike with features like sculpted knee cut-outs and Pirelli MT60 RS tires.
This balances tax incentives with demand for larger engines' performance, while testing market appeal for downsized variants.