Last Updated:
The import duty on motorcycles with an engine capacity of up to 1,600 cc, imported as completely built-up (CBU) units, has been reduced to 40% from the previous rate of 50%.
Currently, the Harley-Davidson 440X— the smallest bike in the company’s lineup— is co-manufactured and marketed in India by Hero MotoCorp (File)
In the Union Budget 2025 announced on Saturday, India revealed a reduction in import duty for high-capacity motorcycles, benefiting the American brand, Harley-Davidson.
The import duty on motorcycles with an engine capacity of up to 1,600 cc, imported as completely built-up (CBU) units, has been decreased to 40% from 50%. For motorcycles exceeding 1,600 cc, the duty reductions are even more significant.
Moreover, the import duty on semi-knocked down (SKD) kits has been reduced to 20%, down from 25%. Completely knocked down (CKD) units will now incur a tax of 10%, reduced from the previous 15%.
This move is regarded as a positive signal to the new US administration led by President Donald Trump. The tariffs on Harley-Davidson motorcycles have been a contentious issue in US-India relations. The Trump administration has persistently advocated for lower trade barriers, particularly on US-manufactured goods.
Previously, President Trump claimed that India imposes the highest tariffs on foreign products among major countries. He also warned of reciprocal tariffs on Indian goods.
“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 percent tariff. Brazil is a big charger. The biggest charger of all is India,” Trump stated in a significant economic policy address, as reported by PTI.
“We’re not the foolish country that does so badly. You look at India, a very good friend of mine, Prime Minister (Narendra) Modi, you take a look at what they’ve done, 100 percent tax on a motorcycle. We charge them nothing,” Trump remarked in an interview with CBS News.
“So, when Harley sends over there, they have 100 percent 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 added.
In the meantime, the Indian government has stated that the objective is to foster domestic manufacturing.
India is reportedly also considering cuts to customs duties on approximately seven to eight high-end products, which include specialized steel, high-end motorcycles, and electronic devices.
Currently, the Harley-Davidson 440X — the smallest motorcycle in the company’s lineup — is co-manufactured and sold in India by Hero MotoCorp. The firm, which produces the Harley-Davidson X440 and the X440-based Hero Mavrick 440, sold a total of 12,188 units of these two models during the April-December 2024 period, according to news agency IANS.
(With inputs from agencies)
