New Delhi. After Donald Trump’s victory in the US presidential election, the topic of Harley-Davidson came back into discussion. In fact, Donald Trump has repeatedly raised the issue of reducing import duty on Harley-Davidson motorcycles in India. Even before the 2020 US presidential election, Trump had spoken out loudly against India’s imposition of high import tariffs on Harley-Davidson motorcycles and also threatened strict measures against India upon his return to power. Harley-Davidson is facing a lack of sales in many international markets, including America. After Trump’s return to power, the company’s situation is likely to improve.

Harley-Davidson’s share in the Indian two-wheeler market is very small. Although the company only employs 5,000 people in America, the bicycle manufacturer plays an important role in the trade war between India and the USA. Donald Trump has repeatedly spoken out against high taxes on US-made bicycles in countries such as India and Brazil, calling them unfair trade practices.

When Trump threatened
During his tenure as US President, Trump had called India a “tax king” and in May 2019 abolished the Generalized System of Preferences (GSP), which gave preferential treatment to India in the US market.

In an interview with Fox Business News’ Larry Kudlow in August 2023, Trump raised questions about India’s tax rates, describing them as extremely high. Trump had said: “I want an equal tax system.” India levies high taxes. I’ve seen this on Harley-Davidson (motorcycles). I also said: How are you doing in a place like India? They collect taxes up to 100 percent, 150 percent and 200 percent.

Trump had said in a threatening tone that if India taxes us, we will tax them too. He had also raised questions about the tax systems of India and Brazil.

Why is there a high tax on Harley-Davidson motorcycles?
In India, the company sells bikes in the form of Completely Built Unit (CBU) and Knocked Down Unit (CKD) which are brought into India from outside. The Indian government levies an import duty of more than 100% on imported bicycles. However, in revising the import duty in 2019, the government reduced the import tax on CBU bikes from 100% to 50%. At the same time, the import duty on CKD bicycles was increased from 10% to 15%. Due to high import duties, foreign bikes become expensive in India, which affects sales.

Harley makes bikes with Hero
Harley-Davidson has changed its business strategy in India by partnering with Hero MotoCorp. The company launched the X440 bike in India in July last year in collaboration with Hero MotoCorp. This is a 440cc single cylinder motorcycle designed specifically for the Indian market. This is the company’s first bike with a single-cylinder engine. The company has launched it at an ex-showroom price of just Rs 2,39,500.

Tags: car news, Bicycle News