Tesla will enter India after the tax decreases! How cheap will Harley Davidson bikes be?

Last updated:February 10, 2025, 16:30 IST

India has cut import duty in the 2025 budget, which may make it possible to return to Harley-Davidson and Tesla to India. Harley's bikes will be cheaper and Tesla can also enter.

New Delhi. India has been a country of imported cars and motorcycles for a long time, even before foreign vehicle manufacturers started selling vehicles officially in India. However, most of them were from Japan and Europe. American car manufacturers tried their luck in Ford and Chevroolet India, but due to poor sales they had to stop the sale of their cars in India. Now, with the cut in import duty, can such companies return? Or can new car makers enter India?

In the budget announcement of 2025, India cut import duty for high-end motorcycles, cars and smartphone parts. Since then, there is a lot of discussion about two American brands. They are Harley Davidson and Tesla. Harley first entered India in 2010 and was out after about 10 years. After this, the brand again entered the Indian market. But, due to heavy tax, its price has always been a concern for the company.

How cheap will Harley's bikes be?
Now, Harley will benefit here due to the reduction in import taxes for CBUs with engine capacity of up to 1,600 cc. The company will also benefit in the case of Semi-Nock Down (SKD) units as they have seen a 5 percent decrease in tax, while a fully knocked down (CKD) units will be charged only 10 percent instead of 15 percent.

Tesla's entry also possible
It will also make a way for Tesla to enter India after a long battle with the Government of India, which is asking Tesla to set up a factory in India. In the budget announcement, the tax was reduced from 125 percent to 70 percent for luxury cars including station wagons and recarks priced above $ 40,000 (Rs 35 lakh).