KTM Motorcycles Prices Increase After GST

Prices of KTM motorcycles in India see an increase post implementation of GST.

By Stephen

Updated: Tuesday, July 4, 2017, 18:34 [IST]

The introduction of the Goods and Service Tax (GST) system has resulted in a reshuffling of prices in the automotive sector. Changes in taxation on the motorcycle market can be explained in one sentence - Motorcycles with engine capacity of lesser than 350cc receive a reduction of 2 percent in taxes, whereas motorcycles powered by an engine above 350cc see an increase of 1 percent.

So, one would expect KTM to reduce prices of its RC 200, Duke, 200 and Duke 250. KTM though, for reasons unknown, has increased prices across its entire product range in India up to Rs 5,797. What is most surprising though, is that the price of the 2017 Duke 390 gets the least increase.

The 2017 KTM Duke 390 gets a price increase of only Rs 628, hence retailing at almost the same price. The RC 390 though has seen the highest price increase of Rs 5797. KTM has not revealed the reason for this differential in pricing, but we suspect that it is because, the 2017 Duke 390 was launched fairly recently, at a premium and KTM might not have wanted to increase prices further.

KTM GST Price Breakdown:

Model	Pre-GST Prices	Post-GST Prices	Price Difference
KTM 200 Duke	Rs 1,43,500	Rs 1,47,563	Rs 4,063
KTM 250 Duke	Rs 1,73,500	Rs 1,77,424	Rs 3,924
KTM 390 Duke	Rs 2,25,730	Rs 2,26,358	Rs 628
KTM RC 200	Rs 1,71,740	Rs 1,76,527	Rs 4,787
KTM RC 390	Rs 2,25,300	Rs 2,31,097	Rs 5,797

What makes KTM's pricing strategy more interesting is, its lower capacity 200 and 250cc models which were expected to become cheaper have become more expensive as well. This is the first price increase that the recently launched KTM 250 Duke and 390 Duke has seen.

DriveSpark Thinks!

KTM's new pricing strategy for the RC 390 and Duke 390 makes sense as they have increased prices because of increase in taxes, however increase in prices of the 250 Duke, 200 Duke and RC 200 does not make as much sense, as taxation saw a decrease.