Harley-Davidson bikes set to B

India is completely ready to import harley-davidson motorcycles More economical. This comes after the government decided to remove import duties on premium American bikes as part of an interim trade agreement with the United States. The move mainly applies to motorcycles with engine capacity between 800cc and 1,600cc, including Harley’s premium models sold in India.

Zero import duty for big bikes under trade agreement

Under the framework of the new agreement, India has agreed to offer zero-duty access on US-made motorcycles above 800 cc. Earlier, these bikes attracted a hefty import duty of 44 per cent, which included basic customs duty and social welfare surcharge. As a result, the price of fully built Harley-Davidson motorcycles became very high, limiting their appeal to a very small group of buyers.

Additionally, the move directly addresses a long-standing concern raised by former US President Donald Trump. On several occasions, he criticized India’s high tariffs on Harley-Davidson motorcycles, even publicly citing the issue to highlight the trade imbalance between the two countries. Perhaps this removal of tariffs is also a symbolic gesture of reducing trade tensions.

Limited impact on Hero-Harley partnership

However, the duty cut is unlikely to impact the Harley-Davidson partnership Hero MotoCorp. harley X440 And X440TThose based on the 440cc platform are out of the scope of this decision. These bikes are manufactured locally by Hero MotoCorp at its Neemrana plant in Rajasthan and are priced at Rs 2.35 lakh and Rs 2.79 lakh respectively.

Since the zero-duty benefit applies only to bikes above 800 cc, locally produced mid-sized motorcycles will continue to operate as before. In fact, Hero’s role as Harley’s sole global manufacturer for the 440cc platform remains unchanged.

Small but symbolic market shift

India’s two-wheeler market, which sells around 20 million units annually, is dominated by commuter motorcycles in the 110 cc to 250 cc range. Premium brands like Harley-Davidson, Ducati, jubilationAnd kawasaki Work in a very small area. According to industry data, Harley sold only 187 fully imported motorcycles in the 800-1,600cc range during the first nine months of the current financial year.

However, despite the small numbers, the move holds significance. Harley-Davidson exited manufacturing in India in 2019 due to weak demand due to high prices. The current decision may improve brand visibility and pricing perception, even if volumes remain limited.

What other changes are taking place under the treaty?

Apart from motorcycles, India has agreed to reduce customs duties on large diesel and petrol cars, while electric vehicles are currently left out of the deal. Meanwhile, the US will also reduce tariffs on select Indian goods after the first phase of the agreement is signed by mid-March.

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