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The plan under discussion would remove import duties on bikes with engine capacities of 750cc and above, according to a report.
Currently, most of Harley’s models are imported as Completely Built Units (CBUs) from the United States and attract steep import duties. (Photo: Shahrukh Shah/ News18)
Owning a Harley-Davidson remains a dream for many Indian motorcyclists, but the premium price tag — largely due to hefty import duties — keeps it out of reach for most. Now, that may be set to change. According to a Bloomberg report, the Indian government is evaluating a proposal to eliminate tariffs on large-displacement motorcycles, including models from Harley-Davidson Inc., as part of its broader effort to finalise a trade pact with the United States.
The plan under discussion would remove import duties on bikes with engine capacities of 750cc and above, according to Bloomberg, which cited sources familiar with the matter.
If approved, this could make Harley-Davidson motorcycles significantly cheaper in India.
Following the report, shares of Eicher Motors, the parent company of Royal Enfield, fell up to 3 per cent on April 23.
Currently, most of Harley’s models are imported as Completely Built Units (CBUs) from the United States and attract steep import duties. Only the entry-level X440, manufactured locally in collaboration with Hero MotoCorp, is exempt from these levies.
This potential tariff rollback would build on earlier cuts announced in the Union Budget, which reduced customs duties on motorcycles with engine sizes up to 1600cc from 50% to 40%. High-capacity motorcycles account for a negligible share of India’s nearly 16 million annual motorcycle sales, so the move is unlikely to disrupt domestic manufacturers.
India is also reportedly willing to enter into a reciprocal agreement with the US to scrap import duties on select auto parts — an area where it sees export potential and minimal domestic resistance.
The tariff talks come in the wake of heightened trade tensions. Former US President Donald Trump had labeled India the “tariff king” due to the high levies on Harley-Davidson bikes, and recent US trade sanctions, including a 26% retaliatory tariff set to take effect on April 2, were temporarily paused for 90 days to allow room for negotiations.
Meanwhile, US Vice President JD Vance is currently visiting India, a trip seen as strategically important in ongoing trade dialogues. Speaking in Jaipur on Tuesday, Vance said, “Americans want further access to Indian markets. This is a great place to do business, and we want to give our people more access to this country and Indians.”
However, while India’s gesture on motorcycle tariffs may ease tensions, it may not be enough to prevent further US demands for opening up India’s protected sectors, such as e-commerce, electric vehicles, and agriculture, as part of a wider trade agreement.
Both India’s trade and heavy industries ministries declined to comment on the ongoing discussions.
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