The recent cut in GST rates on smaller bikes with 350cc engines has compelled the brands to rethink, reevaluate and reassess their model launch strategy
The Union Govt had recently cut the GST rates to 18 percent from the existing 28 percent on bikes with engine capacity below 350cc in the domestic market. This move generated immense buzz among the buyers as these motorcycles became subsequently cheaper and more accessible. Now, we have learnt that several leading two-wheeler brands such as Honda, Hero and Royal Enfield among others are revising their product strategy with an aim to launch as many models in the sub 350cc segment in the coming months.
“The next round of launches will aim for maximum performance within 350cc. It’s the sweet spot for both taxation and demand,” said an executive at a leading motorcycle maker to ET Auto. Presently, Royal Enfield has the biggest and most diverse 350cc portfolio of motorcycles with as many as five models namely Hunter, Bullet, Classic, Meteor and Goan Classic.
Bajaj, Honda and Hero are making efforts to expand their presence in the sub 350cc segment of motorcycles in the Indian market. Recently, Rakesh Sharma, Executive Director – Bajaj Auto said, “The sub-350cc segment will clearly benefit more, and we’ll look to strengthen our portfolio there. The industry has already passed on the GST rate cuts, which should lift overall performance.”
Honda Motorcycle & Scooter India (HMSI) currently retails two 300cc bikes in the Indian market namely CB300F and CB300R while three models are positioned in the 350cc category in the form of CB350, CB350C and CB350 H’ness. “Our 350cc models have been well accepted by customers, reinforcing confidence in this segment,” said Yogesh Mathur, director, sales and marketing. The Japanese brand will launch multiple new models in the 350cc segment by early 2026.
Hero MotoCorp and Bajaj Auto, the two home-grown two-wheeler brands, have also confirmed the debut of several new motorcycles in the 350cc segment in the coming 3-5 months in India. In fact, industry insiders claim that Royal Enfield is apparently readying its future engines under the 350cc threshold while focusing on performance without any compromise.
“It’s not downsizing. It’s making 350cc the new benchmark for aspirational biking,” an industry insider said on condition of anonymity. The engineering team has been tasked by the brands to look for smarter electronic fuel mapping, light-weight elements and stringent combustion control in order to extract maximum torque and efficiency from the 350cc engine.
