Zero-duty access for US bikes from 800 to 1,600 cc under trade deal; benefiting Harley-Davidson: Official

New Delhi: India will grant US motorcycle makers zero-duty access for motorcycles with engine capacities of 800-1,600 cc and above under the interim trade deal, a move that would benefit iconic American brand Harley-Davidson, an official said on Saturday. Last year, the government had reduced import duty on motorcycles with an engine capacity of up to 1,600 cc, which are imported as completely built-up (CBU) units, from 50 percent to 40 percent.

For motorcycles with an engine capacity of more than 1,600 cc, the excise duty was reduced from 50 to 30 percent.

India and the US on Saturday issued a joint statement on an interim trade pact, which is expected to be signed by mid-March.The official said the abolition of duties will come into effect on the day of the agreement’s implementation.

India is a small market for high-end premium bikes and the US share in this segment is miniscule.

In October 2020, Hero MotoCorp and Harley-Davidson announced a partnership for the Indian market. The deal envisaged Hero MotoCorp developing and selling a range of premium motorcycles under the Harley-Davidson brand in the country. It is also entrusted to take care of the service and parts requirements for Harley bicycles.

Hero MotoCorp is also mandated to sell Harley accessories and general merchandise, riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and its existing sales network in the country.

Further, under the trade deal, India will also provide duty concessions on imports of US cars – diesel vehicles of engine capacity of 2,500 cc and above and petrol vehicles of 3,000 cc and above, the official said.

The US will also remove reciprocal tariffs on certain auto parts from India, while on some other parts it will be 18 percent.