Bajaj Auto, one of India’s leading two-wheeler and three-wheeler manufacturers, is riding high on a wave of optimism as October sales are projected to outpace September, thanks to recent GST reductions and a buoyant festive season. Executive Director Rakesh Sharma has called this year’s Navratri the company’s best in five years, signaling a strong start to the festive quarter and a promising outlook for Diwali and beyond.
🎯 GST Cuts: A Timely Boost for Affordability and Sentiment
The Indian government’s decision to reduce GST rates on select automobile segments has proven to be a game-changer. Effective from September 22, 2025, Bajaj Auto passed on the full benefit of the GST cuts to customers, offering up to ₹20,000 off on two-wheelers and KTM motorcycles, and up to ₹24,000 on three-wheelers3. This move significantly improved affordability, especially for middle-income buyers and small business owners who rely on Bajaj’s vehicles for daily mobility and livelihood.
According to Sharma, the GST cut not only made vehicles more accessible but also boosted consumer confidence. Many buyers who had postponed purchases in anticipation of the tax reform rushed to dealerships in late September, resulting in a sharp surge in sales during the final nine days of the month.
📈 October Momentum: Full Impact of GST Cuts Unfolds
While September saw a late rally, October is expected to reflect the full impact of the GST cuts. Bajaj Auto anticipates stronger retail traction throughout the month, driven by continued festive enthusiasm, pent-up demand, and improved sentiment.
This optimism is echoed across the industry. Citi Research reports a 48% month-on-month rise in Bajaj Auto’s domestic two-wheeler sales in September, with exports up 12% year-on-year5. October is poised to build on this momentum, especially as logistical challenges ease and dealer offtake stabilizes.
🏍️ Premiumization: Customers Upgrading Their Ride
One of the most notable trends driving Bajaj Auto’s growth is the shift toward premium motorcycles. Over the past five years, the share of sub-100 cc motorcycles has declined from 55% to 48%, indicating that consumers are increasingly opting for higher-capacity bikes. The GST cuts have reinforced this trend, giving slightly better-off customers the confidence to stretch their budgets for more powerful and stylish models.
To sustain this momentum, Bajaj Auto made a strategic decision to absorb the GST hike on motorcycles above 350 cc, including its KTM and Triumph offerings. Despite the GST rate increasing from 28% to 40% for these models, Bajaj maintained stable prices to avoid disrupting the ramp-up of its premium segment. This move has been well-received by both customers and dealers, further cementing Bajaj’s position in the aspirational motorcycle market.
🌍 Export Excellence: Latin America Leads the Charge
Beyond domestic success, Bajaj Auto is also making waves internationally. The company reported record quarterly sales in Latin America, growing at 1.5 times the industry rate in major markets. With over 30 countries contributing 80% of its global business, exports remain a vital growth engine. The appreciation of the US dollar has also supported margins, making Bajaj’s offerings more competitive abroad.
This global strength provides a cushion against domestic volatility and regulatory pressures, allowing Bajaj Auto to maintain a balanced growth trajectory.
⚠️ Challenges Ahead: Inflation and Regulatory Costs
Despite the upbeat outlook, Bajaj Auto remains cautiously optimistic. Sharma highlighted potential headwinds such as inflation, rupee volatility, and rising regulatory costs — including mandatory ABS (Anti-lock Braking System) on all two-wheelers — which could partially offset the benefits of GST cuts.
The real test, according to Sharma, will come in January and February once the festive demand normalizes. Sustaining growth beyond the seasonal spike will require strategic pricing, product innovation, and continued investment in premium and electric segments.
🛣️ Road Ahead: Strategic Positioning for FY26
As Bajaj Auto enters the second half of FY26, it does so with strong tailwinds. The combination of GST-driven affordability, festive cheer, premiumization, and export momentum positions the company for robust performance. However, management remains vigilant, aware that macroeconomic factors could impact affordability and margins.
The company’s proactive approach — from absorbing GST hikes in premium segments to passing on benefits to entry-level buyers — reflects a nuanced understanding of market dynamics and consumer behavior. If October delivers as expected, Bajaj Auto could set a new benchmark for festive season performance, reinforcing its leadership in India’s mobility landscape.
Hello, my name is Muskan Kumari and I am an experienced Digital Marketer. I have been blogging for the last 3 years and I have special interest in SEO. Here I give you easy bikes and writes easy-to-understand reviews and news about the latest bikes, helping readers choose the best options.. My aim is to always provide you with accurate, new and useful information.
