Import Duty Cut Will Not Have Significant Impact: Harley-Davidson India

Harley-Davidson India's sales will not have any 'significant impact' on the government's decision to cut import duties on fully imported motorcycles from 75 per cent to 50 per cent. Harley-Davidson's Managing Director for India and China, Peter Mackenzie told Carandbike that the cut in import duties will not have any significant impact, because only a handful of Harley-Davidson models are fully imported from the US. Mackenzie was responding to a query about US President Donald Trump's recent remarks about India not doing enough to cut import duties further on US-made motorcycles.

The 2018 Harley-Davidson CVO Limited is a full import and is the most expensive model, priced at Rs. 49.99 lakh (ex-showroom)

Also Read: Harley-Davidson India Slashes Prices For CBU Models

"There will be no significant impact on our sales in India, but what we have done is passed on the price reduction on to customers and that's what we have announced here today. I think anybody who manufacturers or purchases goods in any country will always welcome lower tariffs, but quite a lot of our portfolio here is in the CKD, and there's been an increase in costs there, an increase in import duties. At this stage we've said that we'll protect our price position at least till the end of the financial year, till March 31. We are evaluating what impact that will have on prices. It's inevitable but we'll have to check if the prices will go up or come down," said Mackenzie.

More than 40 per cent of Harley-Davidson India's sales come from the 'made in India' Street series

The Harley-Davidson India Managing Director was responding to a question whether the cuts on customs duties on Harley-Davidson motorcycles will have any real impact on Harley-Davidson's sales in India. President Trump has once again raised the issue of high import duty on Harley-Davidson motorcycles by India, saying the US was "getting nothing" with the Indian government's recent announcement that it had slashed customs duty on imported motorcycles from high-end brands to 50 per cent. Trump said the US wants fair and reciprocal trade deals, saying that the US gets "zero" when it imports an Indian motorcycle.

Also Read: US President Trump Takes A Dig At PM Modi Over Harley Tariff Issue

Harley-Davidson India has 16 models on sale in India, under several broad segments in the Street series, Sportster, Softail, Touring and CVO models. Of these, the Harley-Davidson Street 750 and Harley-Davidson Street Rod, the entry-level Harley-Davidson motorcycles, are completely made in India and account for over 40 per cent of Harley-Davidson India's sales. The customs duty only affects the completely built unit (CBU) motorcycles, which are fully imported from the US. Harley-Davidson India has only four models which are CBUs, in the Touring range - the Road King, Street Glide Special, Road Glide Special and the CVO Limited.