Exclusive: Harley-Davidson India Hikes Prices Of CKD Models

Harley-Davidson India has quietly increased prices of all motorcycle models which are assembled in India from completely knocked down (CKD) kits. These models include Harley-Davidson's popular Sportster and Softail models, which are assembled in India, as well as the bestselling made in India Street 750 and Street Rod models. Harley-Davidson India officials have confirmed to CarandBike that prices of the Street series and other CKD models have been increased with effect from April 1, 2018. The hike in prices of CKD models is in line with the government's decision to increase customs duty on components, such as engine and gearbox from 10 per cent to 15 per cent.

The made in India Harley-Davidson Street series make up more than 80 per cent of Harley-Davidson India's sales

All of Harley-Davidson's CKD models have now been increased by up to 8 per cent, with the biggest price change in the Harley-Davidson 1200 Custom, which sees a price difference of Rs. 86,000, while the Harley-Davidson Fat Boy's price has been raised by Rs. 60,000. The bestselling Street 750, which is completely made in India, has however, seen only a slight price increase of Rs. 8,000. The fully-imported models in the Touring and CVO range have seen no change in prices right now. In February 2018, Harley-Davidson had reduced prices of its completely built unit (CBU) or fully imported bikes after the government's decision to cut customs duty on imported bikes to 50 per cent from 75 per cent on 800 cc or above bikes.

The price of the Harley-Davidson 1200 Custom has been raised by Rs. 86,000

Also Read: Harley-Davidson Slashes Prices Of CBU Models

Harley-Davidson sells as many as 16 models in India, out of which only four are full imports - the Road King, Street Glide Special, Road Glide Special and the CVO Limited. Prices of these CBU models begin at Rs. 24.99 lakh for the Road King, going up to Rs. 54.30 lakh for the CVO Limited. In fact, according to data published by the Society of Indian Automobile Manufacturers (SIAM), more than 85 per cent of Harley-Davidson India's sales come from the Street series (Street 750 and Street Rod), and sales volumes of the fully imported models only account for around 2-3 per cent of overall sales.

Triumph's bestselling adventure bike, the Tiger 800 has become more expensive due to the hike in customs duty on components

Also Read: Mixed Reactions To Customs Duty Cut On Imported Bikes

The hike in customs duty has already affected prices of other premium motorcycle manufacturers like Triumph which assemble most models in India. While the reduction in duty on fully imported motorcycles has been welcomed by premium brands like Indian Motorcycle, which import their entire portfolio as CBUs, those brands which have set up assembly units in India are now hit by increased duties. Clearly, the government's 'make in India' campaign hasn't really been pragmatic, as far as premium motorcycles are concerned. While full imports have become less expensive, manufacturers which are at least assembling their models in India are now being taxed more.