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India reduced motorcycle import duties in the 2025 Union Budget and later considered scrapping them for bikes above 750cc.
Harley-Davidson, which exited India in 2020 before re-entering through a partnership with Hero MotoCorp, stood to gain significantly from the development. (Photo Credits: Instagram)
US President Donald Trump has once again reignited the Harley Davidson tariff debate, claiming that India imposes “100% to 200% tariffs” on American motorcycles. Speaking at a press conference from the Oval Office on September 2, Trump said, “So we were not doing much business with India, but they were doing business with us because we weren’t charging them, foolishly. So everything they made, they sent into the US, it poured into the US market, and we were not sending anything because they were charging us a 100% tariff.”
Citing Harley Davidson as an example, he said, “I’ll give you an example, Harley Davidson. They could not sell in India as there was a 200% tariff on a motorcycle.”
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However, trade records show that while the duty on high-capacity imported motorcycles was once among the steepest globally, it has not stood at 200% in recent years. When Trump first raised the issue in 2018, the tariff was 100%, which was subsequently lowered.
Current Tax Breakdown On Imported Motorcycle Duties In India
The Union Budget 2025 reduced import duties on motorcycles. For completely built-up (CBU) bikes up to 1,600 cc, the duty came down from 50% to 40%. It was cut from 25% to 20% for semi-knocked down (SKD) units. Similarly, for completely knocked down (CKD) units, the rate dropped from 15% to 10%. On motorcycles above 1,600 cc, the duties are now 30% (CBU), 20% (SKD) and 10% (CKD).
The Union Budget also proposed a steep cut in customs duty on fully built motorcycles above 1,600 cc, slashing it from 50% to 30%.
For motorcycle enthusiasts, the impact was expected to be tangible. The price cuts were meant to make premium bikes significantly more affordable, giving brands like Harley-Davidson a stronger foothold in the Indian market. The reduction in import duties was also expected to boost sales in the high-end motorcycle segment.
GST And Cess On Motorcycles
Motorcycles with engines up to 180 cc are taxed at 18% GST plus a 3% cess. Larger bikes above 350 cc, such as Harley-Davidson models, fall under 28% GST along with an additional 17% cess.
Harley-Davidson 2025 Motorcycle Range Prices In India (As Of June 2025)
• Harley-Davidson X440: Rs 2,39,500
• Harley-Davidson Nightster: Rs 13,51,000
• Harley-Davidson Nightster Special: Rs 14,29,000
• Harley-Davidson Sportster S: Rs 16,70,000
• Harley-Davidson Heritage Classic: Rs 23,85,000
• Harley-Davidson Fatboy: Rs 25,90,000
• Harley-Davidson Pan America Special: Rs 25,10,000
• Harley-Davidson Breakout: Rs 37,19,000
• Harley-Davidson Street Glide: Rs 39,29,999
• Harley-Davidson Road Glide: Rs 42,30,000
Future Reductions?
In April 2025, the government considered removing import duties on motorcycles above 750cc as part of broader trade negotiations with the US. The move could have made Harley-Davidson’s iconic cruisers far more affordable, potentially lowering prices of models like the Road Glide and Nightster by 20% to 30%.
This proposal followed the duty cuts announced in the Union Budget, which had already offered some relief to superbike buyers. Reports at the time suggested negotiators were discussing zero tariffs on large-capacity bikes, directly addressing the US’s long-standing demand for greater access to India’s premium two-wheeler market. Harley-Davidson, which exited India in 2020 before re-entering through a partnership with Hero MotoCorp, stood to gain significantly from the development.
- Location :
Delhi, India, India
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