American motorcycle giant Harley Davidson has increased pricing of its motorcycles in India in order to comply with the hiked custom duty of the CKD (Completely Knocked Down) models here. Interestingly, this move comes after the brand’s decision to lower pricing of the CBU (Completely Built Unit) models in India in February this year, as the Indian government has lowered the custom duty for the CBU products.
As the custom duty for the imported engines and gearboxes has been increased to 15% from 10%, Harley Davidson has hiked the pricing. The Harley Davidson motorcycles in India now come pricier by up to Rs. 70,000 depending on the model. In this revised pricing list, the entry level product of Harley Davidson in India, the Street 750 has seen a price hike of Rs. 8,000. On the other hand, the Heritage Classic is now priced at Rs. 19.71 lakh compared to the previous pricing of Rs. 19.01 lakh.
Considering the fact that Harley Davidson lowered the pricing of its CBU models in India by up to Rs. 3.73 lakh in February, the American brand was expecting to see a higher sales number in coming days. But, the latest price hike for the CKD models will certainly hurt that expectation.
Speaking about the change in the custom duty for CKD models, the motorcycles that see a custom duty of 15% compared to previous 10%, if the engine and gearbox are being imported separately. Apart from the Harley Davidson, Triumph too follows the same strategy. On the other hand, the motorcycles that are imported and assembled here with the engine and gearbox brought as a single unit are seeing a lowered 25% custom duty compared to previous 30%. Suzuki sits in this category with its high-end bikes.