- US-India trade deal removes import duties on 800cc-1600cc heavy motorcycles from day one
- Harley-Davidson benefits as tariffs on heavy motorcycles are eliminated, aiding market re-entry
- Tariffs on cars over 3000cc will reduce to 30% over 10 years, excluding electric vehicles
In a move that prioritises American horsepower over the new-age EVs, the US - India trade deal will pave the way for the iconic heavy-duty motorcycles to enter the Indian market, government sources have told NDTV Profit.
As part of the US-India trade deal agreement, India will eliminate all import duties on heavy-duty motorcycles with engine capabilities between 800cc and 1600 cc, which will be effective from 'day 1'.
This move is a clear win for a company like Harley-Davidson, which has been a central figure in trade disputes between the two countries over the years.
India is also set to reduce tariffs on cars with engine power of more than 3,000 cc to 30% over 10 years. However, this only applies to internal combustion engine (ICE) vehicles, with the government opting to keep electric vehicles (EVs) away from the deal.
This will serve as a big blow for Elon Musk's Tesla, which entered the Indian markets last year, opening an official store in BKC, Mumbai. There were hopes that the Indian government would consider EVs to be a part of the auto reduction plans, but the snub means Tesla cars will continue to attract steep tariffs, thereby protecting local automakers and their efforts to make EVs more accessible on Indian roads.
Harvey Davidson, on the other hand, officially exited the Indian market in 2020 amid weak sales and high tariffs. They later partnered up with Hero MotoCorp to sell premium, imported bikes. But the elimination of tariffs for heavy-duty bikes could make Harley-Davidson bikes considerably cheaper.
Meanwhile, the Indian government has also reduced import tariffs on American wine, which will now only attract a minimum import price - a move that could be significant for the Indian liquor market.
READ MORE: Cheaper Scotch, Bourbon Soon: Premium Alcohol Prices Set to Drop 40% After US, EU Trade Deals
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