GST 2.0 has no affect on KTM, Bajaj and Triumph bikes

GST has been hiked for bikes that are above 350 CC to 40 per cent from 31 per cent and this move has forced to hike the prices of all bikes that use an engine above the 350 CC mark.

Major manufacturers that operate in this space include Aprilia, KTM, Bajaj, Royal Enfield and Triumph, along with Ducati, Yamaha, Kawasaki and Honda to name a few.

But unlike Royal Enfield, Bajaj, Triumph, KTM and Piaggio has absorbed the GST hike instead of passing it on to the customers. This ought to boost the customer sentiment and we can expect some discounts as well with the festive season around the corner.

The majority players that attract customer is the above 350 CC include Bajaj Pulsar NS 400 Z, Bajaj Dominar, KTM 390 Duke and RC range, KTM 390 Adventure along with Triumph Speed 400 and Triumph Scrambler 400 X to name a few.

But the ex-showroom prices of these bikes remain unchanged, even Piaggio will absorb the complete GST impact and there will no price hike for the customers. The ex-showroom, Maharashtra cost for Tuono 457 continues to be Rs 3,95,000.

The company is offering benefits over Rs 35,000 to all customers effectively negating the revised GST price hike. This includes a flat Rs 15,000 absorption of GST price hike and a complimentary quickshifter worth Rs 20,500 on all RS457 bikes across India.

On the other hand, Royal Enfield is passing the GST hike to the customers, the 450 CC family which includes the Scram, Himalayan and Guerrilla has received a minimum hike of Rs 15,131 and a maximum hike of Rs 21,682. On the other hand the 650 CC segment which includes the Interceptor, Classic 650, Shotgun, Bear 650, and Super Meteor has received a minimum price hike of Rs 22,522 and a maximum hike of Rs 29,486.

With festive season right around the corner this move of absorbing GST hike seems like a strategic approach which can give a good advantage over the OEMs that are passing it onto the customers. Many customers are likely to wait for the Diwali discounts to make a purchase in the upcoming weeks and many are wondering if this is a temporary move or will it remain in effect even after the festive season is over. We may see a revision of prices after the festive season is over.