Austrian motorcycle manufacturer absorbs additional tax burden on premium models above 350cc while passing GST reduction benefits to customers purchasing smaller displacement motorcycles in India.
22 Sep 2025 | 6782 Views | By Sarthak Mahajan
KTM announced Monday that it will maintain current ex-showroom prices for its 390cc motorcycle range despite a recent increase in Goods and Services Tax (GST) to 40% for motorcycles above 350cc displacement. The company will absorb the additional tax burden to keep popular models like the 390 Duke, 390 Adventure, ...
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KTM announced Monday that it will maintain current ex-showroom prices for its 390cc motorcycle range despite a recent increase in Goods and Services Tax (GST) to 40% for motorcycles above 350cc displacement. The company will absorb the additional tax burden to keep popular models like the 390 Duke, 390 Adventure, and RC 390 accessible to customers.
The decision affects KTM's premium motorcycle segment in India, where the brand has established a significant presence since entering the market in 2012. Models below 350cc, including the 160 Duke, 200 Duke, and 250 Duke, will benefit from reduced GST rates, with savings passed directly to consumers.
"KTM has always stood for accessible, performance-driven motorcycling," said Manik Nangia, President of Probiking Business Unit. "By keeping ex-showroom prices unchanged on our >390cc range and passing on the benefits of GST reduction on smaller models, we reaffirm our commitment to motorcycling."
The Austrian manufacturer has built a customer base of nearly 500,000 riders in India through its partnership with Bajaj Auto Limited, which began in 2007. India has become KTM's largest global market, with over 450 dealerships across the country.
KTM's decision comes during the festive season when motorcycle sales traditionally increase. The company positions itself in the premium sports motorcycle segment, competing with brands targeting performance-oriented riders.
The GST restructuring reflects the Indian government's approach to luxury goods taxation, with higher rates applied to premium motorcycles while providing relief for more affordable transportation options.