The India-US pact could bring Tesla, Jeep and Harley Davidson closer to Indians, while protecting desi players

India’s interim trade deal with the United States is poised to recalibrate the country’s niche premium mobility segment, with duty concessions on select high-end motorcycles and large-engine vehicles expected to increase consumer choice without materially disrupting the domestic industry.According to a report from The times of India, US brands such as Harley-Davidson, Jeep and Tesla are likely to benefit from the concessions, even as safeguards mean Indian manufacturers face little direct competition.

The government’s approach, the report said, provides targeted relief in segments where domestic participation and volumes remain limited.

At the same time, the broader agreement ensures zero-duty access to a wide range of Indian exports – from agriculture and pharmaceuticals to high-value manufactured goods – underscoring a reciprocal structure aimed at balancing consumer access with domestic economic interests, Trade and Industry Minister Piyush Goyal said.Also Read: Harley-Davidson Bikes Will Become Cheaper in India Under US Trade Deal; impact on Hero JV unlikely

Premium imports, limited domestic overlap

Notably, fully built Harley-Davidson motorcycles in the 800 to 1,600 cc category will be zero-rated once the framework is implemented, marking a concession that previous US administrations had previously sought in vain.

“The concessions are only for Harley Davidson motorcycles and not for others,” an official told ToI.

The report added that for vehicles with an engine capacity of more than 3,000 cc, import duties could be reduced from 110% to 50% for a certain number of units, before falling to zero over the next decade – an opening that could benefit both Tesla and Jeep, especially after the exit of Ford and General Motors from the Indian market.

Industry executives quoted by ToI suggested that the impact on domestic producers would be minimal as Indian companies are not meaningfully active in these high-movement segments and overall volumes remain low.

Price signals and consumer choice

Additional details reported by The Economic Times indicate that import duties on fully built premium Harley-Davidson motorcycles over 800cc, currently around 44%, will be scrapped under the interim pact.

The relaxation is “aimed at addressing US concerns,” said VG Ramakrishnan, managing partner at Avanteum Advisors LLP, adding that the move comes “without meaningfully impacting market access or manufacturing in India,” the paper said.

Premium motorcycles represent only a small portion of India’s annual two-wheeler market, which is around 20 million units per year. This market is dominated by mass-market motorcycles between 110 cc and 250 cc, ET previously reported.

Harley-Davidson itself sold just 187 fully imported motorcycles in the 800 to 1,600 cc range in the first nine months of the fiscal year, highlighting the limited scale of the segment.

The pact also provides for lower customs duties on certain petrol and diesel cars with large engines, although electric vehicles are left out of the current framework, suggesting that the near-term impact on consumers will focus on conventional premium segments rather than mass EV adoption.

Zero duty, open market: Goyal says US doors will open tariff-free to Indian farmers and pharmaceutical companies

Exports, reciprocity and the broader trade balance

While most attention has focused on high-end imports, the greater economic significance of the agreement may lie in access to exports.

Goyal said several Indian agricultural products – including tea, spices, fruits, grains and processed foods – will now enter the US market at zero tariffs, along with pharmaceuticals, gems and jewelry and various manufactured goods.

“I can say with full confidence that this India-US agreement will not in any way harm the interests of Indian farmers, MSMEs or the handicrafts and handicrafts sector,” the minister said, stressing that domestic safeguards will remain intact even as market access increases.

Taken together, the framework suggests a calibrated shift: modestly cheaper access to select global premium vehicles for Indian consumers, combined with significantly broader export opportunities for Indian manufacturers.