Trump complains, but Harley-Davidson sales grow in India
Mumbai, Mar 01: American President Donald Trump in his speech to Congress today said that 100 % import duties on US company Harley-Davidson’s expensive motorcycles were hurting the makers.
On the contrary, in India, one of the countries where the luxury bikes are taxed at that same rate, sales have increased by a rapid 30 % in the past 2 years.
“Our dealerships have expanded to 27 in 17 cities across the country,” The Harley-Davidson India said on Wednesday in a statement.
Mr. Donlad Trump in his speech to Congress today said that “The United States must create a level playing field for American companies and workers,”.
“Presently, when we export products to other countries, many other countries make us pay very high tariffs and taxes — but when they ship their products into the US, we charge them almost nothing.”
Trump noted that he recently met with Harley Davidson, who brought five motorcycles to the President’s White House. “And they wanted me to ride one and I said ‘no thank you,” said Trump, an ad lib that didn’t appear in his prepared remarks, which were released by the White House shortly after he began speaking.
Trump said that Harley-Davidson executives have told him “it’s very hard to do business with other countries like India because they tax our goods.”
The US motorcycle company isn’t the only one attracting high import duties.
All luxury motorcycles and cars are taxed between 100-125 % in India.
Duties for used luxury cars are even higher to protect the local car and bike manufacturers.
According to the International Trade Centre documents, the tariff, applied by India government on motorcycles with engines larger than 800cc, is a full 100%. Other major countries with high tax tariffs on large motorcycles are Thailand, China, and Malaysia.
With the increasing number of millionaires in India, luxury bikes have become popular in large metros and small towns alike.
Despite such high tax tariffs, the country has become a lucrative market for premium international brands to expand and boost their sales targets.
As of now, the only thing preventing the iconic American brand Harley-Davidson to access huge potential of India’s superbike market is the engine size of its motorcycles.
With Agency Inputs.