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Bajaj has launched a 350cc-engined version of the Dominar 400 in India, priced at Rs 203,000 (ex-showroom Delhi) — about Rs 37,000 less than the previous 400cc version. The main driver of the price cut is the GST rate dropping from 40% to 18%.
Looking at the spec sheet, this isn't a story about reduced performance, it's a story of engineering around tax law. Keeping the 89mm bore from 373cc while trimming stroke from 60mm to 56.1mm to land at 349.13cc — that intent is irresistible. Output drops 2.4bhp but 40bhp is secured. The idea of straddling the line where GST goes from 40% to 18% purely through engine design is exactly the kind of implementation I love.
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Releasing a model with lower displacement to keep the price down, that's an interesting strategy tailored to the realities of the Indian market.
Is GST basically India's version of a consumption tax?
Right, it's India's indirect tax, Goods and Services Tax. Changes to the tax bracket feed straight into vehicle prices.
Bugs me that the article doesn't give the actual horsepower figure for the 350cc version.
In the same category of Indian tourers, the price range probably overlaps with Royal Enfield's Himalayan too.
They call it a price cut from the GST reduction, but since it's a pricing strategy that relies on tax policy, it's not really permanent.
Getting 37,000 rupees cheaper is huge, this should bring it within reach for a lot more people.
Bringing in a lower 350cc version alongside the Dominar 400, more options is a good thing for users.
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