India Mulls Tariff Cuts on Harley-Davidson Motorcycles

India is considering eliminating tariffs on imported high-end motorcycles with engines of 750cc and above, including brands like Harley-Davidson, as part of ongoing trade talks with the United States. Currently, these motorcycles face import duties of up to 100%, contributing to high prices and limited market access for foreign brands. If implemented, the tariff cut could lower premium bike prices by as much as 30%, potentially boosting sales for brands like Harley-Davidson, which now sells in India via Hero MotoCorp after ceasing local manufacturing in 2020. The move is intended as a goodwill gesture to address US concerns over high tariff barriers. However, the prospect of increased competition has led to a drop in Eicher Motors' share price, reflecting concerns for Indian manufacturers such as Royal Enfield. The proposed changes remain under negotiation and are contingent on broader US-India trade discussions.