After the conclusion of the Union Budget session 2018, one of the major decisions taken was the increase in custom duty rates from 10 per cent to 15 per cent for Completely Knocked Down kits and parts which meant a price rise of many locally-assembled motorcycles. Harley-Davidson at the time stated the price hike would happen by the end of March 2018. Sure to its word, the prices for CKD motorcycles were increased, which became effective from April 1, and ranges from Rs 8,000-70,000, depending on the model.
However, don’t be upset fully because Suzuki announced a minor drop in the prices of its flagship Hayabusa which is also imported as a CKD. The reason being the differential rate charged by the government for different kind of CKD kits. Those imported to the country with a separate engine and gearbox unit attract a duty of 10 per cent, which has been increased to 15 per cent. However, CKD units which come to the country with the engine and gearbox as a single unit (Suzuki) used to incur a 30 per cent duty rate, which was recently reduced to 25 per cent. This was around the same time the government announced a reduction in CBU import duties.
In the case of Harley-Davidson, the Street 750 which is positioned as the most affordable Harley-Davidson, has witnessed a price hike of Rs 8,000. The price of the Street Rod has been increased by Rs 37,000 which means the prices are now Rs 5.25 lakh, and Rs 6.45 lakh, respectively.