New Delhi, Feb 7: India will grant zero-duty access to US motorcycle makers for bikes with engine capacities of 800–1,600 cc and above under the interim trade agreement, a move that would benefit iconic American brand Harley-Davidson, an official said on Saturday.
Zero-duty access for US bikes under interim pact
Last year, the government had reduced import duty on motorcycles with engine capacities of up to 1,600 cc, which are imported as completely built-up (CBU) units, from 50 per cent to 40 per cent.
For motorcycles with engine capacities exceeding 1,600 cc, the duty was curtailed to 30 per cent from 50 per cent.
Trade pact to be implemented by mid-March
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 that the duty elimination will come into effect on the day of the implementation of the agreement.
Limited size of premium bike market
India is a small market for high-end premium bikes, and the US’ share in the segment is minuscule.
Hero MotoCorp–Harley-Davidson partnership
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 with taking care of service and parts requirements for Harley bikes.
Hero MotoCorp also has the mandate 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.
Also Watch:
Duty concessions for US cars, tariff changes for auto parts
Further, under the trade agreement, India will also provide duty concessions on imports of US cars — diesel vehicles with engine capacities 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 components, it will be 18 per cent.
(Disclaimer: Except for the headline, this article has not been edited by FPJ’s editorial team and is auto-generated from an agency feed.)
