New Delhi, Feb 1 In a strong positive signal to the new US administration under President Donald Trump, India has cut import duty on high-capacity motorcycles in the Union Budget 2025-26, which will give a boost to the American brand Harley-Davidson.
Motorcycles with engine capacity of up to 1,600 cc, which are imported as completely built-up (CBU) units, will now attract an import duty of 40 per cent as against 50 per cent earlier, as per the Budget document.
The import duty on semi-knocked down (SKD) kits has been cut to 20 per cent versus 25 per cent earlier.
The completely knocked down (CKD) units will be taxed at 10 per cent as against 15 per cent earlier.
According to the 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.
Separately, the Budget also said that high-end cars priced above $40,000 will now attract a tariff rate of 70 per cent from 125 per cent earlier, as demand for luxury cars grows in the country.
Hero MotoCorp, 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.
This constitutes a year-on-year increase of 77 per cent and gives Hero MotoCorp a 13 per cent share of this segment.
The Made-in-India Harley-Davidson rolls out of Hero's Garden Factory at Neemrana in Rajasthan.
It has three variants -- Denim (Rs 2.40 lakh), Vivid (Rs 2.60 lakh), and S (Rs 2.80 lakh) -- and 8,974 units were sold in April-December 2024, up 31 per cent, as per industry data.
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