The Indian government has reduced the customs duty on imported motorcycles and cars. For motorcycles, the basic duty on fully imported models has been slashed from 50% to 40%, and for larger motorcycles, it’s down from 50% to 30%. This change is expected to make high-end bikes like Harley Davidson and Suzuki Hayabusa more affordable in India, according to various media outlets.
However, the government has also introduced an Agriculture Infrastructure and Development Cess (AIDC) on imported two-wheelers, whether as CBU, SKD, or CKD units. The impact of this cess on the overall duty rates is still uncertain, and it could affect the final prices for consumers.
The duty cuts on foreign bikes seem to be part of a broader strategy to reduce tariff barriers in sectors where India already has a strong supply chain, particularly in the automotive industry.
This decision comes after former U.S. President Donald Trump, during his first term, urged India to cut customs duties on Harley-Davidson motorcycles. He had criticized India’s high tariffs on American products and even threatened to impose 100% tariffs on countries like India if they moved away from using the U.S. dollar.
Recently, Trump has imposed significant tariffs on imports from Canada, Mexico, and China, citing issues like illegal immigration and drug trafficking. These actions have led to retaliatory tariffs from the affected countries.
India’s External Affairs Minister S Jaishankar clarified that India never supported the idea of de-dollarisation and there were no plans for a BRICS currency. This statement followed Trump’s threat, but the focus now seems to be on smoothing trade relations with the US while also protecting the interests of local manufacturers.
For motorcycle lovers, this budget decision brings some good news. With lower duties, bikes like Harley Davidson’s Fat Boy, Street Glide, and Honda Gold Wing will likely become more affordable. Even smaller models, like the Harley Sportster and PanAmerica, will see price cuts due to Harley’s collaboration with Hero in India. Plus, other big brands like Suzuki, Ducati, and Kawasaki will also benefit from these changes. However, the new cess might complicate the situation, and the final price reductions could vary based on how this tax is implemented.
