Owning a Harley-Davidson is a dream for many bikers, but in India, the steep price tags are a significant barrier, mainly because most Harley models are imported as Completely Built Units (CBUs) from the U.S., except for the locally manufactured X440 in partnership with Hero MotoCorp.
Now, India is discussing the potential elimination of its import duties on premium category motorcycles as a goodwill gesture intended to strengthen trade relations with the U.S. while still upholding its typically protectionist trade policies, according to Bloomberg.
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India may eliminate tariffs on Harley-Davidson, eyes duty-free access for high-end motorcycles
Sources claim that the Indian government has decided to scrap tariffs on motorcycles 750cc and above. These talks are ongoing, and a final decision will depend on the outcome of trade negotiations. The goal is to enhance access for premium US brands such as Harley-Davidson. This will come after the earlier decision to halve import duties on motorcycles below 1600cc from 50% to 40%. Given that high-displacement motorcycles account for just a small percentage of India’s 16 million annual bike sales, the shift is unlikely to rattle local players too much.
India, meanwhile, is also said to be willing to agree to a reciprocal zero-tariff arrangement on auto parts, which aligns with its export goals and is unlikely to generate any pushback domestically. President Trump has repeatedly berated India’s high import taxes on Harley-Davidsons as an emblem of unfair trade. The possible policy change could help de-escalate tensions and avert the 26% retaliatory tariffs the United States put in place on April 2, which have been suspended for 90 days.
India’s trade and industry ministries have not commented on the issue. At the same time, US Vice President JD Vance, is visiting India, underlining the nation’s key role in ongoing trade talks Vance said in a speech in Jaipur that America will be interested in better access to its market and India comes as a good place for business. Still, these tariff cuts might not be enough to stop U.S. demands for wider access to protected sectors such as e-commerce, electric vehicles, and agriculture.
FAQs
Why are Harley-Davidson bikes so expensive in India?
Most models are imported as CBUs, attracting high import duties.
What change is India considering for big bikes?
India may remove import tariffs on motorcycles above 750cc.
