India cuts import duty on high-capacity motorcycles, boost for US brand Harley-Davidson
Updated: Feb 2nd, 2025
In a strong positive signal to the new US administration under President Donald Trump, India has cut import duty on high-capacity motorcycles in the Union Budget 2025-26, which will give a boost to the American brand Harley-Davidson.
Motorcycles with engine capacity of up to 1,600 cc, which are imported as completely built-up (CBU) units, will now attract an import duty of 40% as against 50% earlier, as per the Budget document.
The import duty on semi-knocked down (SKD) kits has been cut to 20% versus 25% earlier.
The completely knocked down (CKD) units will be taxed at 10% as against 15% earlier.
According to the government, the aim is to promote domestic manufacturing.
India is also reportedly planning to cut customs duty on about seven to eight high-end products – including specialised steel, high-end motorcycles, and electronic items.
At present, the Harley-Davidson 440X – the smallest motorcycle in the company's line-up – is co-manufactured and sold in India by Hero MotoCorp.
Separately, the Budget also said that high-end cars priced above $40,000 will now attract a tariff rate of 70% from 125% earlier, as demand for luxury cars grows in the country.
Hero MotoCorp, which manufactures the Harley-Davidson X440 and the X440-based Hero Mavrick 440, sold 12,188 units of these two models in the April-December 2024 period.
This constitutes a year-on-year increase of 77% and gives Hero MotoCorp a 13% share of this segment.
The Made-in-India Harley-Davidson rolls out of Hero's Garden Factory at Neemrana in Rajasthan.
It has three variants – Denim (₹2.40 lakh), Vivid (₹2.60 lakh), and S (₹2.80 lakh) – and 8,974 units were sold in April-December 2024, up 31%, as per industry data.
(This story was taken from a syndicated feed and was only edited for style by Gujarat Samachar Digital team)
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