Harley-Davidson, Ducati bikes may get cheaper in India, Here's why
India's Union Budget 2025 proposes a significant reduction in import duties on high-capacity motorcycles, benefiting brands like Harley-Davidson, Ducati, Honda, and Suzuki. Customs duties on completely built units (CBUs) with engines exceeding 1,600cc are reduced from 50% to 30%, making premium motorcycles more affordable for Indian consumers.
FollowThe American brand Harley-Davidson will benefit from India's announcement on Saturday in its Union Budget 2025 to reduce import duties on high-capacity motorbikes. The Union Budget has suggested a significant reduction in customs charges on fully constructed motorbikes with engine capacities more than 1,600cc, from 50% to 30%, in anticipation of Prime Minister Narendra Modi's upcoming trip to the United States. High-end manufacturers like Harley-Davidson, Ducati, Honda, and Suzuki gain from this action, which increases Indian purchasers' access to these motorcycles.
Customers of brands like Honda, Suzuki, Ducati, and KTM are relieved that the budget has lowered customs taxes on both smaller imported motorbikes and big motorcycles with engine displacements more than 1,600cc. Customs duties on fully constructed bikes have been reduced from 50% to 40%. The tariff on completely constructed imports of motorbikes with engines larger than 1,600cc has been reduced from 50% to 30%. Furthermore, fully knocked-down (CKD) units will only be subject to a 10% duty, while semi-knocked-down (SKD) units will now be taxed at 20%, a five percentage point decrease.
But for motorcyclists, the effect is noticeable and quick. Premium motorcycles will become much more accessible thanks to the price reductions, which will aid in the growth of companies like Harley-Davidson and Ducati in the Indian market. It is anticipated that the lower import taxes would boost sales in the luxury motorbike market, which has historically been hindered by high taxes.
The Budget's immediate message for Indian customers, meanwhile, is that purchasing a Ducati or Harley-Davidson is now much more affordable. Both consumers of high-end motorcycles and foreign manufacturers hoping to increase their presence in India stand to gain from the new tariff structure as the government attempts to strike a balance between pressures from international commerce and domestic economic factors.
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