Harley-Davidson may be the most visible beneficiary of the India–US trade agreement that allows zero-duty imports of American motorcycles in the 800 cc to 1,600 cc range, but the pact is unlikely to translate into lower prices or a material increase in volumes in the Indian market, according to industry analysts.
The limited impact stems from the fact that Harley’s current India portfolio is already insulated from import duties through Thailand, which remains the company’s primary export base for the region.
At present, the three large-capacity Harley-Davidson motorcycles sold in India — the Nightster, Sportster S and Pan America – are fully imported from Thailand and attract zero basic customs duty under the India–Thailand free trade agreement.
How do Harley’s prices remain protected?
Ex-showroom prices for these models range from around Rs 14.5 lakh to nearly Rs 28 lakh, depending on the variant. With the duty benefit already embedded, analysts said the India–US trade deal does not create additional headroom for price reductions unless Harley shifts sourcing to the US.
Analysts pointed out that Thailand will continue to make economic sense as Harley-Davidson’s India sourcing base even after the India–US trade deal takes effect. Thailand serves as Harley’s Asia manufacturing and export hub, offering lower production costs, shorter logistics cycles and products better aligned with Asian regulatory and riding conditions.
This allows Harley to price motorcycles at levels that are aspirational but still commercially viable in India, something US-built models would struggle to achieve even with zero duty.
What did Ravi Bhatia say?
“Even with zero duty from the US, the market impact will remain marginal because the segment itself is extremely small and affordability remains a constraint,” Ravi Bhatia, president of JATO Dynamics India, told Fe. He added that motorcycles above 800 cc account for well under 1% of India’s two-wheeler market, limiting the commercial significance of tariff changes on fully imported premium models.
Sales data reflects this constraint. Between April and December 2025, Harley-Davidson sold a total of 97 units across the three high-capacity models in India, marginally higher than the 96 units sold in the corresponding period a year earlier. This compares with annual domestic two-wheeler sales of over 20 million units, dominated by commuter motorcycles and scooters below 450 cc.
Hemal N Thakkar, senior practice leader and director at Crisil Intelligence, said zero-duty imports of US-built Harley motorcycles in the 800 cc to 1,600 cc range are unlikely to materially alter demand trends. “From day one, zero duty will not move the needle on volumes because the addressable market is very limited,” he said, adding that the competitive impact on domestic manufacturers would remain muted.
Harley-Davidson’s India operations are currently anchored through its partnership with Hero MotoCorp, which manages sales, service and parts for the brand. As part of the tie-up, Harley has introduced the made-for-India X440, developed on Hero’s Mavrick 440 platform, which forms the company’s volume play in the country. Analysts said this partnership, rather than tariff relief on high-capacity imports, will continue to define Harley’s commercial prospects in India.