After India and the US announced a new trade deal earlier this week, details of the interim agreement between the two major economies have started to emerge.
Harley-Davidson is set to get cheaper in India with the new Indo-US trade deal.Under the trade agreement, India is ready to give zero-tariff access to US motorcycle makers for bikes with engine capacity of 800-1,600 cc and above, an official said, according to PTI.
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The move is set to benefit American brand Harley-Davidson, whose motorcycles are among the most sought after The official said that the duty waiver will be effective from the day of implementation of the agreement.
Harley Davidson portfolio includes bikes like Street 750, Iron 883.
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The development comes after India and the US announced on Saturday that they have reached a framework for the first phase of a bilateral trade agreement under which both sides will reduce import duties to boost trade.
The first phase of the agreement is expected to be signed in mid-March. Under the deal, the US will reduce reciprocal tariffs on Indian goods to 18 percent, from 50 percent previously.
Last year, the government reduced the import duty on motorcycles with engine capacity up to 1,600 cc from 50 percent to 40 percent.
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Will zero-tariff access hurt local manufacturing?The straight answer is no. India has a small market for high-end premium bikes. Moreover, the United States has a small share in the segment.
Although the high-end bike market is small, the move assumes significance.
US President Donald Trump has, on several occasions, expressed concern over India’s import duties on Harley-Davidson motorcycles, saying the company could not sell its bikes in the country due to high duties.
In 2020, Hero MotoCorp and Harley-Davidson announced a partnership for the Indian market. In this deal, Hero MotoCorp proposed to manufacture and sell various premium motorcycles under the Harley-Davidson brand in India.
Meanwhile, Hero MotoCorp was mandated to sell Harley accessories and general merchandise, riding gear and apparel through Harley-Davidson dealers and its existing sales network.
India has allowed the import of several US products at zero duty, where local production is insufficient, or to meet quality standards and low market prices. Union Minister Piyush Goyal has listed several products including alcoholic beverages, cosmetics and medical devices that will face zero duty in India.
