India Mulls Zero Tariff on Harley-Davidson Bikes to Strengthen US Ties

In a move that could reshape the premium motorcycle segment, the Indian government is reportedly considering a sharp reduction—or even complete elimination—of import duties on high-end motorcycles, including those from American icon Harley-Davidson. The development, first reported by Bloomberg, is seen as part of New Delhi’s broader effort to strengthen trade ties with the United States.

Tariff relief for big bikes?

Sources familiar with the matter suggest that the proposed changes would apply to bikes with engine capacities of 750cc and above—categories dominated by global names like Harley-Davidson, BMW Motorrad, and Ducati. At present, these models attract steep import duties ranging between 50% and 100%, putting them out of reach for many Indian consumers.

Boon for Harley-Davidson

If the tariff cut is approved, it would mark a major boost for Harley-Davidson, which has long struggled to gain traction in India’s price-sensitive market. Although the company wound down its local manufacturing operations in 2020, it still maintains a presence through a distribution partnership with Hero MotoCorp.

A zero-duty policy could reduce prices of premium bikes by up to 30%, potentially reviving consumer interest and injecting new life into Harley’s India strategy.

Also Read: Harley-Davidson Bikes Likely to Become Cheaper in India With Tariff Removal | Republic World

Trade Talks sweetener

Analysts believe the timing of the proposal aligns with ongoing trade discussions between New Delhi and Washington. The tariff rollback is being viewed as a goodwill gesture to support negotiations for a broader bilateral trade agreement. It may also help address longstanding concerns from the U.S. about India's high tariff barriers—an issue frequently raised during Donald Trump’s presidency.

Blow for Harley Davidson?

However, the move could pose challenges for domestic players. Shares of Eicher Motors, parent company of Royal Enfield, dropped nearly 3% on reports of the tariff cut, reflecting market concerns over stiffer competition from more affordable imported models.

Experts suggest that Indian manufacturers may need to accelerate innovation and improve product offerings to maintain their market share in a more open landscape.

Market expansion

Though still under consideration, the proposal has already generated buzz across the automotive industry. Analysts say it could pave the way for more liberalized trade policies in the auto sector and encourage other global premium brands to enter the Indian market.

As policymakers weigh the potential impact, enthusiasts and investors alike are watching closely to see if India’s roads will soon welcome more powerful machines—at far more accessible prices.