The Time To Cruise On A Harley-Davidson May Be Coming Soon

But this time, armed with a slew of duty breaks that are currently being negotiated, Harley-Davidson may lower the price just enough to bring it within reach of high-income enthusiasts and high-testosterone wannabes.

The iconic all-American mo'bike received a lukewarm response in India during its first coming, largely due to prohibitive prices. Even now, prices for top models are steep, to put it mildly. At the extreme end is Harley’s Road Glide, sporting a Milwaukee-Eight 114 V-twin engine, delivering 93.8 bhp and 168 Nm of torque. It is priced at Rs 41,78,829, ex-showroom.

The Street Glide has a 1,923cc, Milwaukee-Eight engine producing 107.2 bhp and 175 Nm of spine-squelching torque, and is priced at Rs 38,79,000, ex-showroom. For the poor, there’s Harley’s Breakout, also with a Milwaukee-Eight engine, but one that churns out 103.2 bhp and 168 Nm of torque. This will sap some enthusiasm with its Rs 30.99 lakh price tag.

Yes, there are affordable variants in the line-up too, tailored for those Indian bikers who want the Harley label more than the bike itself, or all that it stands for and delivers. 

Now, there’s pricing hope for the true biker brigade as well.

Budget 2025, Tariff Cuts Could Send Prices Slithering

Union Budget 2025 gave Harley-Davidsons a fresh lease of life, with import duties cut from 50 per cent to 40, 30, 20 and 10 per cent, depending on ‘build readiness’ and engine capacity.

The Budget slashed duties from 50 per cent to 40 per cent for motorcycles with engines up to 1,600 cc, while those above 1,600 cc attract 30 per cent duties. Further, semi-knocked down (SKD) kits will have 20-per cent duties (25 per cent earlier), and completely knocked down (CKD) units will see duties of 10 per cent (from 15 per cent). This is only the beginning.

According to Commerce Ministry officials, talks with a US team headed by Brendan Lynch, assistant US trade representative, have been moving along steadily, with the broad contours of a bilateral deal already cast in stone. “The US has moved from stealth to fast-track mode to sell and seal the deal, and its team has pushed a tough bargain,” an official admitted.

Last week, Minister of State for Commerce Jitin Prasada informed Parliament that the two countries were negotiating a mutually-beneficial trade agreement. “We will focus on wider market access, lower tariff and non-tariff barriers, enhanced supply chain integration and resolution of trade issues,” Prasada said. 

India has been keen to resolve the tariff imbroglio. If things go the way the US has been demanding, bourbon whisky and Californian wine may see (further) duty cuts to bring them near zero-level. The same has been sought for Harley-Davidson motorcycles, The Secretariat has learnt.

That is the crux of this story.

How Will This Impact Harley-Davidson Pricing in India?

Ironically, price cuts will be finally coming down only due to pressure from the US and President Trump, who has been critical and acidic about “India’s harsh tariff regime”.  

Some analysts feel this is extreme arm-twisting. One of them told The Secretariat on condition of anonymity: “In every reference to India, President Donald Trump yells about the high import duties India levies on Harley-Davidson bikes. Is he not aware that we also import the Ford Mustang? We also make motorcycles of our own that are exported to the US, on which they levy similar duties?" 

Back to Harley-Davidson prices, lower or zero tariffs would mean a Rs 40-lakh motorcycle from the iconic brand would cost just shy of Rs 30 lakh. The same equation would make a Rs 30-lakh variant cost Rs 22 lakh, while a Rs 20-lakh unit would be around Rs 16 lakh. For all practical purposes, the price of Harley-Davidson motorcycles in India would drop by 20-25 per cent.

Lower Duties, Higher Sales May Bring Back Production

One good thing that may emanate, especially from the ‘Make in India’ perspective, is that lower duties and higher sales may spur Harley-Davidson to resume manufacturing in India. In 2014, it began production of the Street 500 and 750 models for domestic sales and exports at Bawal, Haryana. This was Harley’s only production unit outside the US.

When it shut down due to low offtake and rising losses, the company began using a dedicated assembly line in Hero MotoCorp’s unit in Neemrana. This is where the nuts and bolts for the Harley X440 came together, in a unit known as the ‘Garden Factory’, built by the legendary William McDonough, combining technology and the natural world.

The Budget sops and tariff cuts may let everyone have the last laugh — of Harley-Davidson truly returning again, this time to sell and conquer. The ‘hogs’, as the motorcycles are affectionately called to commemorate Harley-Davidson’s first official racing team in the 1920s, might just win this race.

(The writer is a veteran journalist and communications specialist. Views are personal)