Duty-free 800-1,600cc US motorcycles to aid Harley-Davidson, but India remains a sub-350cc market

Harley-Davidson has developed the X440 range of motorcycles in partnership with Hero MotoCorp. (Representative image)

• India grants duty-free access to US motorcycles in the 800-1,600cc category.
• Premium US brands like Harley-Davidson benefit, but market volumes remain small.
• Indian motorcycle sales are concentrated below 350cc, driven by affordability.

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India's interim trade agreement with the US, which will provide duty-free access for American motorcycles in the 800-1,600cc category, is expected to support the presence of premium US brands such as Harley-Davidson in the country. However, the segments covered by the provision remain structurally small within India's motorcycle market.

According to official data from the industry body Society of Indian Automobile Manufacturers (SIAM), the April-December 2025 figures, 96,73,322 units in total, underline the sharp concentration of volumes at lower engine capacities. The Indian motorcycle market continues to be driven by commuter and mid-capacity products, with meaningful scale extending only up to 350cc. This band represents the highest engine capacity at which motorcycles still achieve mass-market volumes.

These lower-capacity segments are dominated by manufacturers such as Hero MotoCorp, Honda Motorcycle and Scooter India, TVS Motor Company, Bajaj Auto and Royal Enfield.

Motorcycle sales in India: Up to 350cc

Motorcycle sales in India: 350cc plus to 800cc

Motorcycle sales in India: Over 800cc

Domestic sales in the 250cc plus to 350cc segment crossed 8,00,000 units during April-December 2025, making it the largest high-capacity motorcycle category in the country and the last segment where demand remains broad-based. Beyond this point, volumes taper off rapidly, highlighting the limits of demand for larger motorcycles in India.

Motorcycles in the 350cc plus to 500cc category recorded domestic sales of under 1,00,000 units over nine months. The next segment, 500cc plus to 800cc, saw domestic sales of around 37,000 units. These numbers place both categories firmly in the premium bracket, with demand driven by enthusiasts rather than everyday mobility needs.

The duty-free access under the interim agreement applies to even higher displacement motorcycles, where volumes are smaller still. SIAM data shows that motorcycles from 800cc to 1,000cc recorded domestic sales of 876 units during April-December 2025. Sales in the 1,000-1,600cc segment stood at merely 845 units, while motorcycles above 1,600cc saw domestic sales of just 153 units. Combined domestic sales for all motorcycles above 800cc were below 2,000 units over nine months, accounting for a negligible share of India's total motorcycle market.

"This distribution reflects long-standing structural factors. Indian motorcycle demand is shaped primarily by affordability, fuel efficiency, running costs and daily usability. Higher-capacity motorcycles are significantly more expensive to acquire and maintain, with higher fuel consumption, insurance premiums and service costs. Urban congestion and road conditions further restrict their practical appeal for most buyers," a sector analyst told Moneycontrol.

Last year, the government had reduced basic customs duty across completely built unit (CBU), semi knocked down (SKD) and completely knocked down (CKD) motorcycle imports for all manufacturers, regardless of origin. Despite those broader duty reductions, demand at the top end of the displacement spectrum remained limited, reinforcing the view that volumes in these segments are constrained more by market structure than by tariffs alone.

"For manufacturers such as Harley-Davidson, duty-free access improves the economics of importing large-capacity motorcycles and supports portfolio breadth and brand visibility. However, such products will continue to operate as niche offerings rather than volume drivers," another sector analyst said.

For Harley-Davidson, the duty-free access comes within the framework of its revised India operating model. In 2020, the US company exited direct manufacturing and retail operations in India, partnering with Hero MotoCorp, which became the exclusive distributor and service provider for Harley-Davidson motorcycles, parts, accessories and merchandise, while also entering into a licensing arrangement to develop, manufacture and sell Harley-Davidson-branded motorcycles in the country.

Among the Harley-Davidson motorcycles currently on offer in India are the X440, X440 T (both 440cc models co-developed with Hero MotoCorp), Nightster (975cc), Sportster (1,252cc), Pan America (1,252cc), Road Glide (1,923cc), Street Glide (1,923cc), Low Rider (1,923cc) and Fat Boy (1,923cc).

Harley-Davidson did not respond to queries on the duty-free access for US motorcycles and its India plans at the time of publication.

"The contrast between policy access and market reality is clear in the numbers. India remains a motorcycle market anchored below 350cc, where affordability and everyday use dominate purchasing decisions. While duty-free entry for 800-1,600cc US motorcycles expands choice at the premium end, the centre of gravity for motorcycle volumes in India continues to sit far lower on the displacement curve," one of the sector analysts observed.