KTM Absorbs GST Hike for 390 Series — Prices Unchanged

KTM has made a bold move: despite the government’s new GST hike on motorcycles over 350 cc, the company will absorb the extra tax for its 390 series and keep ex-showroom prices unchanged. This decision ensures that models like the KTM 390 Duke, RC 390, and 390 Adventure remain accessible to enthusiasts, even as taxation shifts threaten to push premium bikes out of reach.

Background & Market Context

From 22 September 2025, the GST rate on motorcycles above 350 cc has been raised to 40 %. This would have typically led to steep sticker-price increases for bikes like KTM’s 390 range. 

However, KTM (under the Bajaj umbrella) has chosen a customer-friendly path: it will absorb the additional tax cost on its 390cc models. At the same time, for its sub-350cc models such as the 160 Duke, 200 Duke, 250 Duke, KTM is passing the benefit of lowered GST directly to customers. 

Impact on 390 Series Models

The ex-showroom prices for the 390 Duke, RC 390, and 390 Adventure will remain the same as before the tax revision. This protects KTM’s premium performance bikes from becoming significantly more expensive. 

By absorbing the GST hike, KTM ensures that the “aspirational 390cc” segment retains its appeal for riders who value performance, tech, and brand equity without sudden price shocks.

Strategic Rationale & Brand Positioning

This move serves multiple strategic goals:

• Customer loyalty and trust: KTM signals that it values its community by shielding them from regulatory cost burdens.
• Festive-season boost: Launching this decision during a sales peak period heightens footfall potential, reducing sticker shock.
• Competitive edge: Against rivals like Royal Enfield, which face higher sticker inflation under the tax change, KTM’s decision looks aggressive.
• Volume balance: By passing benefits on to the smaller Dukes and absorbing costs on the 390s, KTM balances both ends of its product line.

However, the sustainability of this absorption remains to be seen — KTM hasn’t clarified how long it will maintain these prices. 

KTM’s decision to absorb the GST hike on its 390 series is a bold commitment to riders, ensuring that KTM 390 Duke, RC 390, 390 Adventure remain at stable prices despite taxation pressure. For performance-bike seekers who dreaded sudden cost hikes, this is a relief. The move underscores KTM’s positioning as a brand that blends aspiration with accessibility — and one that prioritizes rider experience over short-term margins.