Key highlights
- India and Thailand’s Free Trade Agreement could lead to lower import duties on premium motorcycles.
- Harley-Davidson bikes above 750cc may see price reductions of up to INR 12 lakh.
- The move aims to boost trade relations and make high-capacity motorcycles more accessible.
Harley Davidson enthusiasts in India may soon have a reason to celebrate, as the Free Trade Agreement (FTA) between India and Thailand could lead to a significant reduction in import duties on premium motorcycles. The policy shift, currently under discussion, aims to improve trade relations while making high-capacity bikes more affordable for Indian riders.
Current duty on Harley Davidson
For years, Harley-Davidson’s larger displacement motorcycles have been subject to steep import tariffs, often ranging between 50% and 100%. These duties have kept models like the Road Glide, Nightster, and Street Glide firmly in the luxury segment. However, if the proposed tariff removal is implemented, prices could drop by 20–30%, making these iconic cruisers more accessible.
What could happen?
The Indian government’s decision is reportedly linked to broader trade negotiations with Thailand, which has been a key exporter of motorcycles and automotive components. The policy builds upon previous reductions in import duties, which saw tariffs on motorcycles up to 1600cc drop from 50% to 40%, and those above 1600cc reduced to 30%.
Harley-Davidson, which exited direct operations in India in 2020, currently sells the X440, a locally manufactured model in partnership with Hero MotoCorp. While the X440 remains unaffected by import duties, the potential tariff rollback could revive interest in Harley’s larger displacement models.
Would it help Harley Davidson sales?
Industry experts believe that the price cuts could make Harley-Davidson more competitive against brands like Triumph, BMW Motorrad, and Ducati, which also import high-capacity motorcycles into India. However, some analysts remain skeptical about whether this will significantly impact sales, given that superbikes still account for less than 0.1% of India’s annual two-wheeler market.
Despite the potential benefits, the final agreement details are still under negotiation. If approved, the policy could reshape India’s premium motorcycle segment, making Harley-Davidson’s legendary cruisers more attainable for enthusiasts.
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