Harley-Davidson Bikes Set to Become Cheaper in India as Import Duty Drops to Zero

India is set to make fully imported Harley-Davidson motorcycles more affordable. This comes after the government decided to remove import duty on premium American bikes as part of an interim trade pact with the United States. This move mainly applies to motorcycles with engine capacities between 800cc and 1,600cc, which includes Harley’s premium models sold in India.

Zero Import Duty for Big Bikes Under Trade Pact

Under the new agreement framework, India has agreed to offer zero-duty access to US-made motorcycles above 800cc. Earlier, these bikes attracted a steep 44 percent import duty, which included basic customs duty and a social welfare surcharge. As a result, fully built Harley-Davidson motorcycles were priced much higher, limiting their appeal to a very small group of buyers.

In addition, this step directly addresses a long-standing concern raised by former US President Donald Trump. On multiple occasions, he criticised India’s high tariffs on Harley-Davidson motorcycles, even citing the issue publicly to highlight trade imbalance between the two countries. Perhaps this tariff removal is also a symbolic gesture to ease trade tensions.

Limited Impact on Hero–Harley Partnership

However, the duty cut is unlikely to affect Harley-Davidson’s partnership with Hero MotoCorp. The Harley X440 and X440 T, which are based on a 440cc platform, fall outside the scope of this decision. These bikes are locally manufactured by Hero MotoCorp at its Neemrana plant in Rajasthan and are priced at Rs 2.35 lakh and Rs 2.79 lakh, respectively.

Since the zero-duty benefit applies only to bikes above 800cc, locally produced mid-size motorcycles will continue as before. In fact, Hero’s role as Harley’s sole global manufacturer for the 440cc platform remains unchanged.

Small but Symbolic Market Shift

India’s two-wheeler market, which sells nearly 20 million units annually, is dominated by commuter motorcycles in the 110cc to 250cc range. Premium brands like Harley-Davidson, Ducati, Triumph, and Kawasaki operate in a very small niche. According to industry data, Harley sold just 187 fully imported motorcycles in the 800–1,600cc range during the first nine months of the current financial year.

However, despite the small numbers, the move carries significance. Harley-Davidson had exited manufacturing in India in 2019 due to weak demand caused by high prices. The current decision could improve brand visibility and pricing perception, even if volumes remain limited.

What Else Is Changing Under the Pact?

In addition to motorcycles, India has agreed to lower customs duty on large diesel and petrol cars, while electric vehicles remain outside the deal for now. Meanwhile, the US will also reduce tariffs on select Indian goods once the first phase of the agreement is signed, likely by mid-March.

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