GST: Bajaj Motorcycles to Become More Affordable From 1st July

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Due to GST all the motorcycles from the homegrown brand will see price reduction; only exception is the Dominar 400

Bajaj Auto is all set to adopt the upcoming Goods and Services Tax (GST) that is scheduled to be rolled out across the country from 1st July, 2017. Once the GST is launched, the homegrown bike manufacturer will join the bandwagon with other two-wheeler manufacturers in the country and reduce the pricing of most of its products, as they will draw 28% tax incidence compared to the current 30% total tax amount.

Bajaj Auto currently sells an array of products ranging between 100 cc and 400 cc. It is the maker of the Pulsar models that have been the most popular and sporty high performance bikes in the country for quite long time. Apart from the Dominar 400 that sits above the 350 cc category, other products from the brand are positioned below 350 cc engine category.

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Under the new tax structure of GST, all these sub-350 cc bikes will see a 2% decline in the total tax amount compared to the current tax system. So, the company is ready to pass on the benefits of the new tax regime to the customers. Meanwhile, the much appreciated Dominar 400, which is the flagship model from homegrown brand, will be marginally pricier as it will draw a total 31% of tax amount due to the 3% cess over and above the 28% slab of GST.

The entire Pulsar range is positioned below 350 cc category, which means the Pulsar models will be cheaper than their current pricing. This is certainly a reason of rejoice for the buyers who have been want to buy a Bajaj Pulsar model. On the other hand, the Dominar 400 that is priced at Rs. 1.39 lakh and Rs. 1.53 lakh (ex-showroom, New Delhi), depending on the non-ABS and ABS variants.

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Expect the flagship Bajaj bike to be marginally pricier by around 3%-5%. However, despite ready to become slightly pricier, sales of the Dominar 400 is unlikely to be affected. On the other hand, it is not sure how cheaper the sub-350 cc models will become. But, we can assume the price reduction will be between 2% and 5%.

Bajaj Dominar 400 Gallery