Harley-Davidson to get cheaper in India as Centre cuts Tariff on Bikes

Imported bikes are set to become cheaper in India. This change includes American brands like Harley-Davidson. The Union Budget 2025 has lowered import duties on high-capacity motorcycles.

The Harley-Davidson tariff has been a point of contention for several years between India and the US. US President Donald Trump has been batting for its reduction. The Budget announcements are anticipated to alleviate these strains.

The import duty on motorcycles with engine capacities up to 1,600 cc has been slashed. These motorcycles are imported as completely built-up (CBU) units. The duty has been reduced from 50 percent to 40 percent. Motorcycles with engine capacities exceeding 1,600 cc experience even larger reductions. The duty decreases to 30 percent from 50 percent.

The import duty on semi-knocked down (SKD) kits has been reduced from 25 per cent to 20 per cent. Completely knocked down (CKD) units will now be taxed at 10 per cent, down from 15 per cent. This change is according to the Union Budget presented on Saturday.

This reduction in tariffs is expected to significantly lower the prices of Harley-Davidson motorcycles in India. It will likely make these bikes more accessible to a broader range of customers. This could potentially increase sales and market penetration for the brand.

The decision to slash tariffs for imported bikes comes amid threats by Donald Trump. He threatened reciprocal taxes on countries that levy high tariffs on US goods.

In December 2024, Trump asserted his tit-for-tat approach to taxation. He said that India’s taxes are excessive and stated, “If they tax us, we tax them the same amount”.

“The word reciprocal is important. If somebody charges us, we don’t have to discuss our own. If India charges us 100 per cent, should we charge them nothing in return? You know, they send in a bicycle, and we send them a bicycle. They charge us 100 and 200. India charges a lot,” he said.