Harley-Davidson has emerged as the most talked-about corporate winner from the India–US trade agreement, which allows duty-free imports of American motorcycles in the 800 cc to 1,600 cc segment. But beyond the optics, the tariff relief is unlikely to translate into lower prices or a meaningful jump in sales in India, as the company’s existing sourcing strategy already shields its premium models from import duties.
The key reason is Harley’s current sourcing model. All three large-capacity motorcycles sold in India — the Nightster, Sportster S and Pan America — are fully imported from Thailand, which already attracts zero basic customs duty under the India–Thailand free trade agreement, a Financial Express report points out.
As a result, the India–US deal does not create any additional pricing advantage unless Harley chooses to shift sourcing to the US, a move analysts say is unlikely.
Ex-showroom prices for these models range from about ₹14.5 lakh to nearly ₹28 lakh. With duty benefits already embedded, there is limited headroom for further price cuts. Thailand is also expected to remain Harley’s preferred export base for India due to lower manufacturing costs, shorter logistics cycles and products better aligned with Asian regulatory standards.
“Even with zero duty from the US, the market impact will remain marginal because the segment itself is extremely small,” Ravi Bhatia, president of JATO Dynamics India, said. Motorcycles above 800 cc account for well under 1 percent of India’s two-wheeler market, constraining the commercial relevance of tariff changes.
Sales data reflects this reality. Between April and December 2025, Harley-Davidson sold 97 units across its three high-capacity models in India, only marginally higher than the 96 units sold a year earlier. This is a fraction of India’s annual two-wheeler sales of over 20 million units, dominated by commuter motorcycles and scooters.
Hemal N Thakkar of Crisil Intelligence said zero-duty imports of US-built Harleys are unlikely to materially alter demand trends or competitive dynamics in India.
Harley’s India strategy continues to hinge on its partnership with Hero MotoCorp, which manages sales and service for the brand and has introduced the locally developed X440 as its volume model.