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Harley-Davidson To Develop A New 350cc Motorcycle After GST 2.0?
Following the introduction of the GST 2.0 reforms, several motorcycle manufacturers, including Bajaj Auto and Triumph Motorcycles, are reportedly developing new sub-350cc engines to benefit from the revised tax structure. Now, Harley-Davidson is also rumoured to be following a similar strategy to avoid the higher GST slab.
Under GST 2.0, motorcycles in the 350cc category are now taxed at 18%. Previously, it was 28% and to make them more affordable, the government has reduced the tax rate. On the other hand, motorcycles with engines above 350cc are now taxed at 40%, which directly impacts their pricing.
As a result, manufacturers such as Bajaj Auto, Harley-Davidson, Royal Enfield, and Triumph Motorcycles have been heavily affected, as their line-ups include multiple models powered by 400cc, 440cc, 450cc, and 650cc engines. Brands like Bajaj Auto and Royal Enfield have reportedly urged the government to consider a uniform taxation system, as it could impact their sales.
Harley-Davidson 350cc Bike
In the meantime, Bajaj Auto, along with its partners Triumph Motorcycles and KTM, has already begun developing a new engine platform under 350cc. Harley-Davidson is also rumoured to work on a new sub-350cc engine, derived from the existing 440cc platform.
The upcoming motorcycle is likely to feature a simple 350cc air-cooled engine with a relaxed and linear power delivery, focusing on daily usability and fuel efficiency. The model is anticipated to debut by 2026 and is expected to become the most affordable Harley-Davidson motorcycle in India, priced below the X440.
Royal Enfield dominates India's retro motorcycle segment, particularly the 350cc category, with models such as the Hunter 350, Bullet 350, Classic 350, and Meteor 350. Harley-Davidson's upcoming offering is expected to adopt a roadster-style design.
Many of its design elements, features, and components likely borrowed from the X440. Pricing is expected to be around ₹1.80 lakh (ex-showroom), while the Harley-Davidson X440 is currently priced at ₹2.34 lakh (ex-showroom).
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