Harley-Davidson Bikes Set for Duty-Free Entry Under India–US Trade Deal

Fully built American motorcycles, including those made by Harley-Davidson, are reportedly expected to get duty-free access to the Indian market under the newly announced interim trade agreement between India and the US. The details of the pact are yet to be made public, with the two countries issuing a joint statement on February 8.

“India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” the statement said, outlining key terms of the interim agreement.

The deal also reduces reciprocal tariffs imposed by US President Donald Trump to 18%. In exchange, India has agreed to buy $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.

India is also set to lower import duties on certain US-made vehicles as part of the trade agreement, according to reports citing government officials. One key concession involves motorcycles exported from the US with engine capacities between 800cc and 1,600cc, which currently attract a total import duty of 44%, including a 40% basic customs duty and a 4% social welfare surcharge. These duties are expected to be removed, The Economic Times reported.

Separately, Reuters reported that tariffs on traditional internal-combustion engine cars with engine capacities above 3,000cc will be reduced gradually to 30% over a 10-year period.

Electric vehicles, however, have been excluded from the deal. Officials told publications that this rules out a lower-tariff entry route for companies such as Tesla.

India, the world’s third-largest car market after the US and China, has long protected its domestic auto industry with steep import tariffs ranging from 70% to 110%. While the country imports only a small number of cars from the US, it does bring in premium motorcycles such as Harley-Davidsons.

Data from the Society of Indian Automobile Manufacturers (SIAM) shows that Harley-Davidson sold 187 fully imported motorcycles with 800cc–1,600cc engines in India during the first nine months of the current financial year. The company also sells locally manufactured models in India through its partnership with Hero MotoCorp. The HD X440 and HD X440 T, based on a 440cc platform and priced at ₹2.35 lakh and ₹2.79 lakh respectively, are produced at Hero’s Neemrana facility in Rajasthan.

Founded in 1903, Harley-Davidson exited manufacturing in India in 2019 amid weak demand, largely due to high import duties that made its products uncompetitive.

The company later entered into a manufacturing and distribution agreement with Hero MotoCorp, enabling it to offer more competitively priced motorcycles tailored for the Indian market. Other high-end motorbikes are also expected to benefit from the proposed duty reductions.