India Opens Zero-Duty Window for Big US Motorcycles, Easing Path for Harley-Davidson Ahead of Trade Deal
India has granted zero-duty market access to US motorcycle manufacturers for bikes with engine capacities between 800 cc and 1,600 cc, a move that directly benefits Harley-Davidson and addresses one of the long-standing concerns repeatedly raised by Donald Trump, a senior official said on Saturday.
Although India is among the world’s largest two-wheeler markets, demand for high-end premium motorcycles remains limited.
Harley-Davidson struggled for years to scale up operations in India and eventually exited the market in 2020, shutting down its direct retail presence.
Later that year, in October 2020, Harley-Davidson returned to the Indian market through a strategic partnership with Hero MotoCorp.
Under the agreement, Hero MotoCorp took responsibility for developing, manufacturing and selling premium motorcycles under the Harley-Davidson brand in India, while also handling after-sales service, spare parts, accessories, riding gear, apparel and general merchandise.
These products are sold through Harley-Davidson-exclusive outlets as well as Hero’s existing nationwide sales network.
Duty Relief Extended to US Cars as Well
Beyond motorcycles, the trade agreement also includes duty concessions for US automobiles, according to the official.
These apply to diesel vehicles with engine capacities of 2,500 cc and above, and petrol vehicles with engine capacities of 3,000 cc and above, further widening access for American automotive manufacturers in the Indian market.
Trump’s Long-Standing Tariff Criticism
Tariffs imposed by India have frequently featured in Donald Trump’s public remarks.
Speaking at an election rally in Detroit in October 2024, Trump argued that while the US maintains relatively liberal tariff policies, countries such as China, Brazil and India impose steep import duties, which American businesses see as a major barrier.
“Perhaps the most important element of my plan to make America extraordinarily wealthy again is reciprocity,” Trump said, stressing that the US generally avoids imposing high tariffs, while others do not.
Recalling discussions with Harley-Davidson executives during his presidency, Trump said the company had flagged tariffs of up to 150 per cent as a serious obstacle to operating in India.
‘They Do It With a Smile’
Despite his criticism, Trump struck a conciliatory note while speaking about India and its leadership.
Referring to his relationship with Narendra Modi, he said, “We have a great relationship with India… especially with the leader, Modi. He’s a great leader.
I think they probably charge more than in many ways in China. But they do it with a smile.”
With India now offering zero-duty access for large US motorcycles and easing tariffs on select automobiles, the move signals a shift towards reciprocity and could reshape the landscape for premium American automotive brands in the Indian market.
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