Bajaj has so far downsized a total of nine motorcycles from above 350cc to below 350cc, and launched a motorcycle that would have been a 400cc otherwise, but is going to be a 350cc in the Indian market. The list of victims so far includes the Bajaj Dominar 400, Bajaj Pulsar NS400Z, Triumph Speed T4, Triumph Speed 400, Triumph Scrambler 400X, Triumph Scrambler 400XC, Triumph Thruxton 400, KTM 390 Duke, KTM 390 Adventure, with the Triumph Tracker 400 never receiving the 400cc engine in India. Only the two KTM motorcycles still retain the larger engines as options, which is not the case for a single Triumph or Bajaj bike. The question is, even though it does save Bajaj some money, how does it affect brand perception?
That, dear reader, is what we will discuss. The downsizing makes sense for the motorcycles on which the margin is already thin, such as the Dominar 400 and the Pulsar NS400Z. However, motorcycles such as the KTM 390 Duke and the 390 Adventure are already premium products, and there exists a perfectly capable 250 variant, which should have seen enough without KTM trying to shoehorn the 350 variants in between the 250s and the 390s.
However, the most egregious misstep in our opinion seems to be the Triumph motorcycles, and unfortunately, the largest number of victims does seem to occupy the British branch of the family tree. We feel that instead of downsizing the engines, Bajaj should have straight-up increased the prices across the board, which would have added more exclusivity to the already prestigious marque. Furthermore, Bajaj should have increased per-unit profit on the Triumph bikes to compensate for the slightly lower sales numbers due to higher prices. That would have taken care of the overall bottom line of the company, without hurting the brand image of Triumph.
For a long time, manufacturers that have treated Indian customers as second-class citizens have suffered in the Indian automotive market, which, while price-sensitive, is a lot more ego-sensitive, and the moment the customers feel they are being shortchanged by a brand, there occurs a mass exodus—look at the fate of General Motors and Ford. Specifically a counterpoint to the downsizing idea, the newly unveiled Harley-Davidson X440T fixes the much-talked-about tail section design, but commands a sizable premium over the regular model. Despite this, the X440 and X440T are managing to find an audience. Furthermore, the Royal Enfield Guerrilla 450 Apex proves that an ex-showroom price of ₹2.5 lakh on a 350cc+ premium motorcycle can be made profitable.
Whether Bajaj’s downsizing pivot is successful or not, only time will tell. However, even if it is successful, it may have done some damage to the premium brand perception of Triumph, which has had the highest aspirational value among the Bajaj-KTM-Triumph trifecta. Now, however, as Bajaj never did increase the prices of the 400cc models, and is selling the 350cc ones at similar prices, there is a real risk of customers feeling shortchanged, which may do more harm than good in the long run.
