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This New Tax Rule In India Could Make 400cc Motorcycles More Expensive Globally

India may have just rewritten the rules on what makes a motorcycle "affordable," and this time, it's no longer just about tech, features, and performance. Rather, it's about how big your engine is. You see, a recent Goods and Services Tax (GST) revision has forced a hard divide in the market, seeing taxes on bikes 350cc and below slashed to just 18%.

While this is good for small-displacement machines, which frankly, make up the bulk of the Indian market. The same cannot be said for premium bikes with bigger engines. Anything with an engine larger than 350cc will fall into a higher tax bracket that can reach around 40%. That one change has pretty much redrawn the battlefield for manufacturers, and the ripple effects could reach far beyond India, maybe even a dealership near you. 

And that's because if you’ve been paying attention over the past couple of years, you’ll know that India has become the global engine behind the modern small- and mid-displacement segments. Bikes like the Triumph Speed 400 and Triumph Scrambler 400 X weren’t just designed for India, but they absolutely relied on it. High local demand meant huge production volumes, and that’s what allowed brands to price these bikes so aggressively in export markets.

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