Harley-Davidson Bikes Might Get Cheaper For Consumers As India Mulls Slashing Import Duties, Says Report

The potential policy shift could see the government removing duties on bikes with engine sizes of 750cc and above, a move seen as a strategic concession in ongoing trade negotiations with the US.

Currently, most Harley-Davidson models are shipped to India as Completely Built Units (CBUs), making them cost-prohibitive for a large section of Indian consumers.

Source : Harley Davidson

India is reportedly evaluating a proposal to eliminate import tariffs on high-capacity motorcycles, including those from iconic American brand Harley-Davidson, reported Bloomberg.

The potential policy shift could see the government removing duties on bikes with engine sizes of 750cc and above—a move seen as a strategic concession in ongoing trade negotiations with the United States.

Currently, most Harley-Davidson models are shipped to India as Completely Built Units (CBUs), making them cost-prohibitive for a large section of Indian consumers. The only exception is the locally produced X440, which is manufactured in partnership with Hero MotoCorp. By removing these tariffs, the Indian government could pave the way for more affordable pricing of large-displacement motorcycles without compromising its broader protectionist approach.

Strategic Trade Considerations with the US

Citing unnamed sources, the news agency reported that the Indian administration, under Prime Minister Narendra Modi, is in active discussions to offer this concession as part of its trade dialogue with US President Donald Trump. However, whether this proposal will be included in the final agreement depends on how talks unfold in the coming weeks.

The policy would build upon earlier tariff reductions on motorcycles up to 1600cc, where duties were slashed from 50 per cent to 40 per cent. Since high-capacity motorcycles account for a minor share of India’s nearly 16 million annual motorcycle sales, the potential impact on local two-wheeler manufacturers is expected to be negligible, reported The Financial Express.

Reciprocal Benefits and Diplomatic Implications

India is also open to a reciprocal zero-tariff framework for auto components—a sector where it has robust export potential and limited internal resistance. The shift aligns with India’s efforts to defuse trade tensions after the US imposed 26 per cent retaliatory tariffs on April 2, currently on hold for a 90-day period. President Trump has in the past dubbed India the “tariff king,” particularly criticising the duties on Harley-Davidson imports.

During his visit to India, US Vice President JD Vance emphasized the importance of deeper market access, saying, “Americans want further access to Indian markets. This is a great place to do business, and we want to give our people more access to this country and Indians.”

While this potential tariff rollback may signal goodwill, it may not be enough to deter the US from pushing India to liberalize other sectors such as e-commerce, agriculture, and electric vehicles—areas that remain tightly regulated and politically sensitive.