Why is the Ducati Hypermotard 698 Mono So Expensive in India?

The Ducati Hypermotard 698 Mono is one of the least powerful bikes that Ducati has ever made. However, it has a higher price tag than the Hypermotard 950 in India. Priced at Rs 16.50 lakh (ex-showroom), it seems like an expensive choice. So, why is this Ducati so costly?

Import Tax and Custom Duties

Almost 90% of Ducati's bikes come from Thailand as completely built-up (CBU) units. Ducati has a big manufacturing unit there, and India has a Free Trade Agreement (FTA) with Thailand. This means Ducati bikes from Thailand usually do not attract custom duties. However, the Hypermotard 698 Mono is taxed heavily in India for a simple reason—it has an engine displacement of less than 800cc. The FTA tax benefits apply only to bikes above 800cc. Bikes below 800cc, like the Hypermotard 698 Mono, are taxed at 50% of their declared value.

Dealer and Operational Costs

Another reason for the high price is the profit margins for Ducati India and its dealers. Premium bikes often have high margins, even for dealers. Running a premium bike showroom comes with high overhead costs. Ducati showrooms are typically located in prime areas of metro cities and employ well-trained staff. To cover these costs and ensure profitability, Ducati offers good margins to its dealers.

Due to these factors, the Ducati Hypermotard 698 Mono has a high price in India. While it may not be a popular choice, Ducati keeps it in their portfolio to offer a complete range of their global bikes in the country.