In a major relief for motorcycle enthusiasts, India has reduced import duties on high-capacity bikes, including American brands like Harley-Davidson, as part of the Union Budget 2025. The move is expected to make premium motorcycles more affordable and improve trade relations with the US.

The import tax on completely built-up (CBU) motorcycles with engine capacities up to 1,600cc has been reduced from 50% to 40%, while bikes exceeding 1,600cc will now be taxed at 30%, down from 50%. Additionally, semi-knocked down (SKD) kits will see a reduction in duty from 25% to 20%, and completely knocked down (CKD) units will now be taxed at 10% instead of 15%.

This reduction could significantly lower the prices of Harley-Davidson models and similar premium motorcycles in India, making them more accessible to buyers. The decision also comes amid ongoing trade discussions, as former US President Donald Trump had long pushed for lower tariffs on American motorcycle imports.

Last December, Trump reiterated his stance on trade reciprocity, stating that India imposed excessive tariffs on American goods. "If they tax us, we tax them the same amount," he had remarked, emphasizing the need for balanced trade policies.

According to data from India’s Ministry of Commerce, the US was India's largest trading partner last fiscal year, highlighting the importance of maintaining stable trade relations between the two nations.