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The import duty on motorcycles with engine capacity of up to 1,600 cc, which are imported as completely built-up (CBU) units, has been slashed to 40% from 50%.
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 (File)
India on Saturday, in its Union Budget 2025, has announced to cut import duty on high-capacity motorcycles, giving a boost to the American brand Harley-Davidson.
The import duty on motorcycles with engine capacity of up to 1,600 cc, which are imported as completely built-up (CBU) units, has been slashed to 40% from 50%. For larger motorcycles with engine capacity exceeding 1600 cc, the reductions are higher.
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.
The decision is being seen as a strong positive signal to the new US administration under President Donald Trump. The tariffs on Harley Davidson bikes have been a mushrooming friction point between India and the US. Trump’s administration has consistently pushed for reducing trade barriers, especially on products that the US manufactures.
Earlier, the US President had claimed that India, among all major countries, imposes the highest tariffs on foreign products. He had also threatened to impose reciprocal tariffs on Indian products.
“Perhaps the most important element of my plan to make America extraordinarily wealthy again is reciprocity. It’s a word that’s very important in my plan because we generally don’t charge tariffs. I started that process, it was so great, with the vans and the small trucks, etc. We really don’t charge. China will charge us a 200 per cent tariff. Brazil is a big charger. The biggest charger of all is India,” Trump had said in a major economic policy speech, as reported by PTI.
“We’re not the foolish country that does so badly. You look at India, very good friend of mine, Prime Minister (Narendra) Modi, you take a look at what they’ve done, 100 per cent tax on a motorcycle. We charge them nothing,” Trump had said in an interview with CBS News.
“So, when Harley sends over there, they have 100 per cent tax. When they (India) send in they make a tremendous number of motorcycles when they send them in, no tax. I called him. I said it’s unacceptable,” he said.
Meanwhile, according to the Indian 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. The firm, 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, reported news agency IANS.
(With inputs from agencies)
