Imported bikes to get cheaper as the Government of India has reduced the import or customs duty on high-end bikes including brands such as Harley-Davidson and Triumph. Motorcycles with engine capacity of 800cc or less used attract 60 percent import duty, while bikes with more than 800cc engine capacity attracted 75 percent import duty. Now, the government has decided to slash the customs duty on imported bikes to 50 percent.
For motorcycles which are brought through the Completely Knocked Down (CKD) kits, and if the engine and the gearbox are pre-assembled, but not fitted on the body assembly, these bikes attract 25 percent import duty, which is down from 30 percent. As for motorcycles imported without the engine and gearbox being mounted on the body assembly, the import duty stands at 15 percent, an increase from the present 10 percent.
The reason behind slashing the import or customs duty on imported bikes is part the government push to ‘Make in India’. We expect high-end bike manufacturers will announce the new prices of their product range. Brands such as Harley-Davidson, Triumph, Indian Motorcycles, BMW Motorrad may pass on the benefit to customers.
Presently, some of the brands are manufacturing the high-end bikes in Thailand and are imported to India via the Free Trade Agreement (FTA) with Thailand, which carries a price advantage to Indian customers. However, the new duty cut on imported bikes may not affect motorcycles brought through the FTA.
DriveSpark Thoughts About Customs Duty Cut On Imported Bikes
The cut in customs duty on imported bikes is indeed good news for those aspiring to buy a high-end motorcycle. That said, many believe that the move behind the reduction in duties on imported bikes as there is a significant demand for these motorcycles and are not being manufactured in the country.
The government has, however, increased the customs duty on engine, gearbox and gearbox mechanisms, so that these are ‘Made in India’ and not imported from other countries. Stay tuned even as we bring you any updated news of price revision of imported bikes.
Story first published: Thursday, February 15, 2018, 11:07 [IST]