Synopsis
India has decreased import duties on high-capacity motorcycles in the Union Budget 2025-26, signaling support for the US administration under President Trump and enhancing prospects for Harley-Davidson. The reduced rates on CBUs, SKDs, and CKDs aim to stimulate local manufacturing.Key Takeaways
- Import duty on high-capacity motorcycles reduced to 40% from 50%.
- SKD kits duty lowered to 20% from 25%.
- CKD units now taxed at 10%, down from 15%.
- Government aims to boost domestic manufacturing.
- Hero MotoCorp reports significant growth in Harley-Davidson sales.
New Delhi, Feb 1 (NationPress) In a significant move that positively impacts the new US administration under President Donald Trump, India has decided to reduce import duties on high-capacity motorcycles in the Union Budget 2025-26, which will greatly benefit the American brand Harley-Davidson.
Motorcycles with engine capacities reaching up to 1,600 cc, imported as completely built-up (CBU) units, will now face an import duty of 40 per cent, down from the previous 50 per cent, as outlined in the Budget document.
The duty on semi-knocked down (SKD) kits has been decreased to 20 per cent from 25 per cent before.
Furthermore, completely knocked down (CKD) units will incur a tax rate of 10 per cent, reduced from 15 per cent previously.
This action is part of the government’s strategy to encourage domestic manufacturing.
Additionally, India is reportedly considering lowering customs duties on around seven to eight luxury items, including specialized steel, high-end motorcycles, and electronic goods.
Currently, the Harley-Davidson 440X—the smallest model from the company—is co-produced and marketed in India by Hero MotoCorp.
Moreover, the Budget specified that high-end cars priced above $40,000 will now be subject to a tariff of 70 per cent, down from 125 per cent, as the demand for luxury vehicles continues to rise in the nation.
Hero MotoCorp, which assembles the Harley-Davidson X440 and the X440-based Hero Maverick 440, recorded sales of 12,188 units for these two models from April to December 2024.
This reflects a 77 per cent increase year-on-year, giving Hero MotoCorp a 13 per cent share in this market segment.
Locally manufactured, the Made-in-India Harley-Davidson is produced at Hero's Garden Factory located in Neemrana, Rajasthan.
It is available in three variants: Denim (Rs 2.40 lakh), Vivid (Rs 2.60 lakh), and S (Rs 2.80 lakh)—with a total of 8,974 units sold from April to December 2024, marking a 31 per cent growth, according to industry statistics.
