Harley-Davidson bikes could become more affordable in India following recent developments in trade relations between India and the United States. The Indian government has been reducing import duties on high-end motorcycles, a move that is expected to make premium bikes like Harley-Davidsons more accessible to Indian consumers.

In the Union Budget 2025, import duties on motorcycles with engine capacities up to 1600cc were reduced from 50% to 40%. For bikes exceeding 1600cc, the import duties have been reduced to 30% from the previous 50%. Moreover, the tariff reductions extend to semi-knocked down (SKD) and completely knocked down (CKD) units, with import duties dropping to 20% and 10% respectively.

Adding to this, a recent interim trade agreement between India and the United States is set to eliminate import duties on Harley-Davidson bikes with engine capacities between 800cc and 1600cc. This measure is expected to directly benefit Harley-Davidson, a brand that has long been sought after by Indian motorcycle enthusiasts.

These tariff reductions are expected to have several positive outcomes. Lower prices may encourage more enthusiasts to finally purchase their dream bikes. Industry experts also believe that this step will help premium motorcycle makers strengthen their presence in the Indian market. The move could also ease trade tensions between India and the United States, a long-standing issue.

Harley-Davidson has had a somewhat rocky journey in India. The company ceased manufacturing in India in 2019 due to weak demand and sales, largely attributed to high import duties that made its products uncompetitive. However, in 2020, Harley-Davidson entered into a partnership with Hero MotoCorp, allowing them to sell locally developed bikes at more attractive prices. The Hero MotoCorp partnership resulted in the development of models like the Harley-Davidson X440, manufactured in Hero's plant in Neemrana, Rajasthan. The X440 is the most affordable Harley-Davidson bike and is designed to compete in the 400cc motorcycle market in India.

While the reduced import duties are expected to make high-end Harley-Davidson bikes more accessible, experts suggest that it's unlikely to significantly impact Harley-Davidson's association with Hero MotoCorp. The duty reductions primarily benefit high-end bikes imported from the US, while Hero MotoCorp manufactures the more affordable X440 locally.

The Indian government is also reducing import duties on luxury cars with engine capacities above 3000cc, from as high as 110% to 30%. This move may make American luxury cars more affordable for Indian buyers and potentially attract fresh investments into India's automobile sector. However, electric vehicles have been excluded from these tariff concessions.

Overall, the reduction and elimination of import duties on high-end motorcycles and luxury cars signal a positive shift for auto enthusiasts in India. The move is expected to boost sales of premium bikes, strengthen the presence of premium motorcycle makers, and potentially ease trade tensions between India and the United States. For Harley-Davidson fans in India, this means the possibility of finally owning their dream bike at a more affordable price.