Here's why purchasing a Harley-Davidson bike could get cheaper in India

Harley-Davidson will likely be the biggest beneficiary after India grants zero-duty access to American motorcycle manufacturers as part of the India-US interim trade agreement, according to reports.

An official told PTI that the Centre will grant the exemption for bikes with engine capacities of 800-1,600 cc and above, with effect from date of implementation of the interim trade pact. The seal is expected by mid-March, the report added.

A Reuters report noted that combined taxes on high-end imported American vehicles sometimes come in as high as 110%. The agency also cited an official to report that rates could drop as low as 30% and benefit Harley-Davidson bikes.

In 2025 too, the government cut import duties on motorcycles with engine capacities of up to 1,600 cc, which are imported as completely built-up (CBU) units, from 50% to 40%, the PTI report added. Further, for motorcycles with engine capacities over 1,600 cc, the duty was cut from 50% to 30%.

Why is zero-duty access for US bikes significant?

India is a small market for high-end premium bikes and share of auto manufacturers from the United States in the domestic market is also negligible. The Harley brand withdrew from India due to low sales in 2020. Later the same year it announced a partnership with Hero MotoCorp, aiming to jointly develop and sell a range of premium motorcycles in the country, as per the report. As part of the deal, Hero will oversee service and parts requirements for Harley bikes in India.

However, the move now is significant as US President Donald Trump has repeatedly pushed for lower tariffs for the sector to bolster Harley-Davidson sales in India.

Harley Davidson's portfolio included bikes like Street 750, Iron 883 among others. Its biggest domestic competitor is high-end bike producer Eicher Motors.

The Union Commerce Ministry did not immediately respond to queries, the Reuters report added.

Auto makers to also see some concessions?

Union Commerce Minister Piyush Goyal said that elementary auto parts exported by Indian manufacturers will face zero tariffs in the US, while some components will still be subjected to duties, Bloomberg reported.

The official told PTI that India is expected to provide concessions on import duty on US diesel vehicles with engine capacities of 2,500 cc and above and petrol vehicles of 3,000 cc and above.

India is the world's third-largest car market after the US and China, the Reuters report noted. Its domestic auto industry has long been protected by steep import tariffs ranging from 70-110%, it added.

American vehicle makers such as Ford and General Motors (GM) have substantially reduced business in India. The immediate and major benefit will be felt by Jeep, which is better positioned in the domestic auto market, according to a Times of India report citing Shailesh Hazela, MD and CEO of Stellantis India (maker of Jeep and Citreon).

Tesla, EV makers still on wait-and-watch

Notably, no exemptions or duty cuts are currently in the pipeline for electric vehicles, the official told Reuters. This is likely to hit Tesla, and owner Elon Musk, who has lobbied hard for lower duties as he seeks to expand base in the country.

The Bloomberg report noted that domestic auto majors Mahindra & Mahindra and Tata Motors Passenger Vehicles will likely be relieved.

To be sure, India has also offered the European Union some auto sector benefits — in the free trade agreement (FTA), tariffs could go as low as 10% for a number of vehicles, including some EVs, the Reuters report added.

(With inputs from Agencies)