The Government of India has announced the Union Budget 2025 with provisions to aid the growth of the electric vehicle market in the country. Along with this, the government has slashed import duties on high-capacity motorcycles. This move from the government is expected to benefit multiple motorcycle manufacturers. Specifically, the impact will be seen on completely built-up units (CBUs) with engine capacities ranging over 1600 cc.
The CBUs with over 1600 cc capacity will see a reduction of import duty from 50 per cent to 30 per cent. Meanwhile, the semi-knocked down units (SKDs) will have a reduction of five per cent which will be down to 20 per cent from 25 per cent. Additionally, the completely knocked down units (CKDs) will have a duty 10 per cent which is down from 15 per cent.
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This move comes after US President Donald Trump called out the country as a "tremendous tariff maker." Hence, the decision to reduce import duties is being viewed as a positive gesture towards the US. However, as per Finance Minister Nirmala Sitharaman, the adjustment of custom duties was implemented to promote self-reliance in the Indian economy and was not a response to Mr. Trump's tariff announcements.
Harley Davidson Bikes To Get Cheaper
The reductions in duty are expected to help a few brands in reducing the prices of their products in India. This includes the iconic American motorcycle manufacturer, Harley Davidson. Furthermore, some of the Italian as well as UK based manufacturers are also expected to reap the benefits of reduced import duties.
It is to be noted that Harley Davidson entered the Indian market back in 2010. However, the brand took a step back exiting the Indian market in September 2020 only to return later after forming a partnership with the Indian giant, Hero MotoCorp. Presently, the brand sells the Harley Davidson X440 in India in partnership with Hero.