We recently reported that Bajaj will be absorbing the hit from the hike in GST rates for the made in India Triumph and KTM bikes. However, this doesn’t seem to be indefinite as the company has bigger plans in the works.
- To develop a smaller sub-350cc engine
- Will compete more closely with RE
- Likely to be ready in six months or less
New sub 350cc Triumph engine being developed
This engine will be based on the existing 399cc motor but with a smaller bore.
Soon after the new GST rates kicked in, we have learned that Bajaj is working on a smaller version of the Triumph 400 range's 399cc engine in India. This engine will have a smaller bore and will be designed to fit in just under the 350cc limit set by the new GST structure. Motorcycles above this capacity are now under the ultra-luxury/sin good category and attract 40 percent GST while bikes below this have been reduced from the previous 28 percent to 18 percent GST.
The potential cost difference between 40 percent and 18 percent is too big to ignore. This is why Bajaj is already at work on developing the new scaled-down engines to fit under the 350cc category. We expect to see a 3-5hp power drop from the Speed 400 which currently produces 40hp/37.5Nm. It will be interesting to see what power figure the Speed T4 will end up with as that bike already produces a much lower 31hp/36Nm.
These smaller engines will be used across the entire Triumph 400 range, which includes the Triumph Speed T4, Triumph Speed 400, Triumph Scrambler 400 X, Triumph Scrambler 400 XC and the new Triumph Thruxton 400. That being said, the existing 400 engine will probably continue for export markets. Bajaj may also offer the 400cc Triumph models in India as well if customers demand it, but this will be at a higher 40 percent GST. This decision will be taken based on customer response to the 350s.
This move does come across as an unfortunate but necessary reaction to the new GST structure. However, there is an unexpected silver lining in it for Bajaj. The positive side to this situation is that the new 350cc Triumphs will be positioned even closer to its main target – super popular rivals like the Royal Enfield Classic 350, Royal Enfield Hunter 350, Royal Enfield Meteor 350 and Royal Enfield Bullet 350. This will not just be in terms of the psychological factor of having a similarly sized 350cc engine, but also in a lower price and may well result in greater success for these Triumphs in the long run.
New KTM 350cc engine possibilities
It is unclear whether Bajaj will make a similar change to the KTM 390 range.
There is also the question of the KTMs and whether Bajaj wishes to make a similar move there. The latest KTMs share their base engine architecture with the Triumphs and have the same bore and stroke. Both engines are otherwise quite different and have completely separate development and test teams within Bajaj. Nevertheless, given their similar base architectures, it is possible that a 350cc KTM engine is also under works within Bajaj’s expansive R&D department.
That being said, whether this move should be applied to KTM is a more nuanced topic. For the Triumphs it is a no brainer as they all use just the one 399cc engine and their sales volumes are already much higher than KTM’s. However, the latter’s product portfolio is spread out over 160cc, 250cc and 400cc. Moreover, the core identity with a KTM 390 product is its performance, and potential customers may not take well to a smaller 350cc engine that is less powerful than even the previous-gen 373cc motor.
Perhaps it bodes well for the 390s to remain as they are at the moment and shift the next generation single-cylinder KTMs to below 350cc while slotting in twin-cylinder models above that. On that topic, early-stage prototypes of new 500cc twin-cylinder KTMs have recently been spotted testing.
In a similar vein, it also remains to be seen if the Bajaj Dominar 400 and Pulsar NS400 will also transition into 350cc models in the future. The Dominar is long overdue for a complete overhaul and the new bike may take on a very different identity. However, when it comes to the new Pulsar NS400Z, going down a similar approach will make sense as the bike already has an incredible price and being able to slot under the lower 18 percent GST rate will only magnify that appeal.