Government Reduces Import Duties on Harley Davidson Motorcycles

To have Harley Davidson motorcycles available and accessible to Indian citizens, the government of India has announced a reduction in the import duties on high-capacity Harley motorcycles during the decision made in the unveiling of the Union Budget 2025-26. This decision has made these motorcycles even more appealing in the market and a little less expensive for the buyers.

How does the reduction work?

• Imported motorcycles with completely built units, or CBUs, with a capacity of up to 1600 cc will be reduced to 40% from the previous 50%.
• Imported motorcycles with semi-knocked down kits, or SKDs, will be reduced to 20% from the previous 25%.
• Imported motorcycles with completely knocked units, or CKDs, will be reduced to 10% from 15%.

What does it mean to the market?

Harley Davidson, being the significantly huge player in the premium motorcycle segment, stands to gain from the reduced import duties. The company has been evidently putting efforts to expand its footprint in our country, as appetite for premium motorcycles is on the rise. The lower duties are expected to increase sales and market share.

The motorcycle company has also been proactively adapting to our market, & in fact, Harley Davidson, in collaboration with Hero MotoCorp, manufactures the Harley Davidson X440 & has witnessed substantial success with 8,974 units being sold in the period of April-December 2024.

By the reduced taxes this year, high-end motorcycles will become more affordable as the government aims to stimulate demand and cause an increase in sales, higher tax revenues, & customer satisfaction.

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