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Harley-Davidson Big Bikes Could Get Cheaper Soon; Zero Duty, Big Win
- Published February 9, 2026
- Views : 3193
- 3 min read

Quick Read:
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India and the US are likely to sign an interim trade agreement by March 2026
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Import duty on American motorcycles could drop from 40 percent to zero
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Motorcycles between 800cc and 1600cc to be covered under the proposal
India and the United States are reportedly close to signing an interim trade agreement ahead of the full Free Trade Agreement, and it could bring big changes to the premium motorcycle segment in India. As per reports, the agreement could be signed as early as March 2026.

Current Import Duty Explained
At present, CBU (Completely Built Unit) motorcycles below 1600cc attract a 40 percent import duty, a rate that was revised in the Union Budget 2025. Meanwhile, CBU motorcycles with engine capacities above 1600cc are taxed at 30 percent.
For manufacturers importing in parts, the rates are lower. Semi-Knocked Down (SKD) kits attract 20 percent duty, while Completely Knocked Down (CKD) units are taxed at just 10 percent.
What Could Change Under The Interim Deal
Under the proposed India-US interim agreement, only the CBU motorcycles imported from the US with engine capacities between 800cc and 1600cc could see their import duty reduced from 40 percent to zero. The import duty on CBU models above 1600cc and CKD models will remain unchanged.

Your Next Big Bike Could Be A Harley
Harley-Davidson stands out as the primary beneficiary of the proposed duty cut. Motorcycles such as the Sportster range, Nightster models, and the Pan America adventure bike are expected to qualify if the agreement goes through.
That said, all the above-mentioned models are made in Thailand and not in the US. It is only Harley’s cruiser lineup, consisting of models such as the Low Rider, Street Bob, Breakout, Heritage Classic, Road Glide, Street Glide and its CVO counterparts, that are made in the US. But the caveat being, these bikes do not fall under the proposed category set to receive zero import duties.
So logically, if India were to benefit from these lowered duties, Harley will have to import the Sportster, Nightster and Pan America range from the US and not from Thailand. But then again, this may also increase the shipping charges (which may make its way into the final pricing) due to the geographical distance.
Thanks to its premium pricing, Harley-Davidson bikes remain a niche in the motorcycle segment. It retailed only 90 units from April 2025 to December 2025, with the majority of the sales coming in from the Fat Boy 117, which tallied an impressive 60 units.

Smaller Harleys Remain Unaffected
Harley-Davidson’s partnership with Hero MotoCorp will continue unchanged. The Harley-Davidson X440 and the X440 T, which are locally manufactured and powered by a 440cc engine, do not fall under the scope of the proposed duty revision.
What This Means For Buyers
If implemented, the India-US trade deal could finally ease the price barrier for large-capacity Harley-Davidson motorcycles. That said, prospective buyers will anyway have deep pockets, so as far as the aam junta is concerned, none of these will really make an impact on affordability. That said, if you have saved up enough to buy a 1000cc bike or so (that’s not a Harley), you might be able to take advantage of the India-EU Free Trade Agreement (FTA), which proposes tax relief for bikes made in the European Union.
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