India is reportedly considering eliminating import tariffs on high-end motorcycles—including Harley-Davidson—as part of a strategic gesture to push forward a broader trade agreement with the United States.
According to a Bloomberg report, this zero-tariff proposal is still under negotiation but signals a significant shift in India’s trade posture.
BT could not independently verify the report.
In this year’s Union Budget, New Delhi already slashed duties on premium motorcycles. Bikes with engines over 1,600cc saw duties drop from 50% to 30%, while semi- and completely knocked down kits were also granted relief. Now, in a bolder move, India is offering to go further: scrap import tariffs altogether on luxury motorcycles.
If implemented, the impact could be immediate and substantial. Price tags on Harley-Davidson motorcycles—often inflated by 30–40% due to duties—could drop by 20–30%, bringing several models within reach for affluent and aspirational Indian buyers.
This would be a game-changer for a brand that once struggled to grow in India due to prohibitively high costs.
Harley-Davidson, which exited direct operations in India in 2020 and now sells through Hero MotoCorp, could use this opportunity to make a strong comeback. Lower tariffs may allow it to reintroduce its full range of premium models, expand its dealership footprint, and revive the brand’s Indian presence.
The zero-tariff offer also signals India’s intent to ease trade friction with Washington, particularly with Donald Trump—now back in office—long vocal about India’s “unacceptable” tariff regime on American motorcycles.
However, it’s not all open road ahead. Other levies like GST and the AIDC cess will still apply, potentially muting the final price drop. Also, Harley must prove it can scale service and support in India’s vast and demanding market.
