Bajaj Auto to launch more 350 cc bikes, bets big on GST 2.0-fueled demand

Bajaj Auto is betting big on premium bikes. After the GST rate was reduced under the GST 2.0 regime during the last festive season, the tax rates for two-wheelers powered by 350 cc or lower engines were reduced to 18%. This has fuelled the demand in the segment, which has propelled the homegrown two-wheeler major's sales numbers during the last two quarters.

In the Q3 FY26, the company registered total sales of 13.41 lakh units, recording a 10% growth, and in the Q4 FY26, it registered a 24% YoY growth with 13.71 lakh units. A significant chunk of these sales came from the rising demand for high-performance premium models in the 350 cc category, which has propelled the OEM to bet big on this space. In fact, last year's tax cut on motorcycles with engine capacities of up to 350 cc has helped the automaker cushion margins against higher shipping expenses, steel and aluminium costs amid the Middle East conflict.

Bajaj aims to leverage 18% GST for sub-350 cc bikes

Bajaj recently launched the updated iteration of the Bajaj Pulsar NS400Z, which received a downsized engine to take advantage of the reduced tax rate. The engine downsizing resulted in a price cut as well. Besides the flagship Bajaj motorcycle, the company also launched the updated Dominar 400 in April 2026, which received a downsized 349.13 cc engine designed to lower its tax bracket and price. Priced at ₹2.03 lakh (ex-showroom), the new model received a significant ₹37,000 price reduction compared to the previous 373 cc version, aimed at budget-conscious enthusiasts. Now, the company has said that it would replicate the same strategy for more motorcycles to fit the 350 cc premium segment to capitalise on the reduced tax rates.

Currently, Bajaj has only these two aforementioned motorcycles in the 350 cc segment, but moving forward, the OEM is expected to introduce more models in this space, which will cater for the demand for premium high-performance motorcycles instead of mundane commuters, as well as help the brand achieve competitive pricing thanks to the 18% GST rate.

KTM-Triumph bikes post best-ever performance in Q4 FY26

Bajaj posted the best-ever performance for its KTM and Triumph bikes with a 40% revenue jump in the Q4 FY26, as compared to the same period a year ago. This was driven by the refreshed KTM Duke and adventure motorcycles, as well as the modern classics lineup from Triumph. Reuters has reported that record sales of Bajaj's more profitable adventure and sports bikes helped expand its margins by 30 basis points to 20.5% during the quarter that ended March 31.

Highest-ever standalone profit after tax in Q4 FY26

Bajaj Auto reported its highest-ever standalone profit after tax for a quarter at ₹2,746 crore for Q4 FY26. With this, the company logged a growth of 34% year-on-year (YoY), owing to a handsome jump in domestic and export volumes. The net profit of the company includes an exceptional gain of ₹35 crore. In the year-ago quarter, the company's net profit stood at ₹2,049 crore.

The revenue from operations increased 32% YoY to a record ₹16,006 crore in the last quarter from ₹12,148 crore in the corresponding quarter last year. While Bajaj Auto's EBITDA (earnings before interest, tax, depreciation and amortisation) rose 36% YoY to ₹3,323 crore in the Q4 FY26 from ₹2,451 crore in the year-ago period, its operating margin climbed by 60 basis points YoY to 20.8% in Q4 FY26 from 20.2% in Q4 FY25.

Revenue from the domestic motorcycle segment witnessed around 30% YoY growth in Q4 FY26, led by products in the Pulsar N and NS series. Besides that, KTM and Triumph cumulatively grew by over 40% YoY during the quarter, with a push from the KTM Duke and the Triumph Speed 400 models.

Check out Upcoming Bikes In India.