With the reduction in basic customs duties on import of motorcycles with engine capacity of 1600 cc from 50 per cent to 40 per cent and on the import of cars costing more than $40,000 from 125 per cent to 70 per cent, the Budget 2025-26 has met the demand of some luxury auto makers to bring their global technology at a reduced cost.

This may clear some misconceptions about US companies like Tesla and Harley-Davidson, Chinese manufacturers like MG and BYD, and new entrants like Vietnam-based VinFast, which are bringing their global marques into the country.

Not only these companies but also existing global automobile firms such as BMW Motarrad, Honda Motor Company (Japan), Suzuki Motor (Japan), Mercedes-Benz, Audi, and many others can bring their global technology to India at reduced costs, which will increase sales of such vehicles.

“Cuts in Basic Customs Duty (BCD) on select items, including in the automotive sector will help and encourage global carmakers to explore the urban middle class of India who are aspirational and looking for new experiences. In the long run, the government aims to shift these companies towards local manufacturing (Make in India) once they recognise India’s market potential,” Puneet Gupta, Director (India & ASEAN Markets), Sales & Powertrain forecast, S&P Global, told businessline.

Currently, Hero MotoCorp imports Harley-Davidson motorcycles through its partnership and sells products like Fat Bob 114 (1868cc), Fat Boy 114 (1868cc), Heritage 114 (1868cc), and Breakout 117 (1923cc), priced at ₹21.49 lakh, ₹25.69 lakh, ₹27.19 lakh, and ₹31 lakh, respectively.