Harley-Davidson Bikes Price Set to Drop – Savings of Rs. 3 lakh on horizon

In a significant move poised to make Harley-Davidson motorcycles more accessible to Indian consumers, the Indian government has announced a reduction in import duties on high-capacity motorcycles. This decision, unveiled in the Union Budget 2025-26, is expected to lower the prices of these premium bikes, thereby broadening their appeal in the Indian market.

The Import Duty Reduction

The revised import duties are structured to benefit various categories of motorcycle imports:

Completely Built Units (CBUs): Motorcycles with engine capacities up to 1,600 cc, imported as CBUs, will now attract an import duty of 40%, down from the previous 50%.

Semi-Knocked Down (SKD) Kits: The import duty on SKD kits has been reduced from 25% to 20%.

Completely Knocked Down (CKD) Units: For CKD units, the duty has been decreased from 15% to 10%.

These reductions are anticipated to make premium motorcycles, including those from Harley-Davidson, more affordable for Indian buyers.

Trump Effect?

The import duties on high-capacity motorcycles have long been a point of contention in international trade discussions, particularly between India and the United States. U.S. President Donald Trump had been vocal about India’s high tariffs on American motorcycles, describing them as unfair trade barriers. He highlighted the disparity by pointing out that while India imposed substantial tariffs on U.S.-made motorcycles, Indian motorcycles faced minimal tariffs when entering the U.S. market.

In response to such concerns, the Indian government had previously reduced import duties on high-end motorcycles. For instance, in 2018, the duty on motorcycles with engine capacities of 800 cc or more was slashed from 75% to 50%. The latest reduction in 2025 further shows Trumps tariff threats are being taken seriously.

What it Means for Harley-Davidson and the Indian Motorcycle Market

Harley-Davidson, an iconic American motorcycle manufacturer, stands to benefit significantly from these reduced import duties. The company has been striving to expand its footprint in India, a market with a growing appetite for premium motorcycles. The lowered duties are expected to make Harley-Davidson’s offerings more competitively priced, potentially boosting sales and market share.

Moreover, Harley-Davidson has been proactive in adapting to the Indian market. The company, in collaboration with Hero MotoCorp, manufactures the Harley-Davidson X440 in India. This model has seen substantial success, with 8,974 units sold in the April-December 2024 period, marking a 31% year-on-year increase. The reduction in import duties complements such initiatives by making other models in Harley-Davidson’s lineup more accessible to Indian consumers.

By making high-end motorcycles more affordable, the government aims to stimulate demand in the premium segment, potentially leading to increased sales, higher tax revenues, and enhanced consumer satisfaction. Additionally, the move could encourage other international motorcycle manufacturers to consider entering or expanding their presence in the Indian market, further enriching the choices available to consumers.

A Win-Win for Enthusiasts and the Industry

The reduction in import duties on high-capacity motorcycles is a significant win for Indian consumers, Harley-Davidson, and the broader premium motorcycle market. While the precise price drops will depend on dealer markups and other taxes, the estimated reductions of ₹2.83 lakh to ₹5.37 lakh across different Harley models will make these motorcycles much more appealing.

For motorcycle enthusiasts, this means a golden opportunity to own an iconic Harley-Davidson at a more affordable price. For the Indian economy, it signals a step toward a more open and competitive market while maintaining a balance between trade liberalization and domestic industry growth.

As the new pricing structures come into effect, it will be interesting to see how other premium motorcycle brands respond and whether India’s luxury vehicle import policy undergoes further transformations in the coming years.