Budget 2025 Slashes Import Duties On High-End Motorcycles, Harley-Davidson Prices To Come Down

Imported motorcycles, including those from American brands like Harley-Davidson, may soon become more affordable in India, as the Budget 2025, presented by Finance Minister Nirmala Sitharaman on Saturday, February 1, 2025, has reduced import duties on bikes with high engine capacities.

The import duty on motorcycles with an engine capacity of up to 1,600 cc, which are also imported as completely built-up (CBU) units, has been lowered from 50 per cent to 40 per cent.

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Harley-Davidson, known for its high-capacity motorcycles, is one of the brands that stands to benefit from this reduction.

Additionally, the import duty on semi-knocked down (SKD) kits has been cut from 25 per cent to 20 per cent, and for completely knocked down (CKD) units, the tax is now 10 per cent, down from the previous 15 per cent.

This move to reduce tariffs comes after US President Donald Trump threatened retaliatory taxes on countries that impose high tariffs on US goods.

Trump had stated in December of the previous year that India taxes excessively, adding, "If they tax us, we tax them the same amount."

According to data from the Ministry of Commerce, India was also the largest trading partner of the US in the last financial year.

Furthermore, the tariff on Harley-Davidson bikes has been a longstanding point of contention between India and the US, with Trump advocating for its reduction.