Trump effect: Harley-Davidson could make a comeback in India after US deal

India has given zero-duty access to US motorcycle manufacturers for bikes with engine capacities of 800-1,600 cc that would give market access to Harley-Davidson — addressing one of US President Donald Trump’s chief concerns in the run-up to the trade deal, an official said on Saturday. While India is one world’s biggest motorcycle markets, it is a relatively small market for high-end premium bikes. After struggling to gain a foothold in the Indian market for several years, the iconic American brand shut its shops in 2020. However, in October 2020, Hero MotoCorp and Harley-Davidson announced a partnership for the Indian market. The deal envisaged Hero MotoCorp developing and selling a range of premium motorcycles under the Harley-Davidson brand in the country. It is also entrusted to take care of service and parts requirements for Harley bikes. Hero MotoCorp also has the mandate to sell Harley accessories and general merchandise, riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and its existing sales network in the country. Under the trade agreement, India will also provide duty concessions on imports of US cars — diesel vehicles with engine capacities of 2,500 cc and above and petrol vehicles of 3,000 cc and above, the official said. Speaking at an election rally in Detroit, Trump in October 2024 said the US is liberal when it comes to tariffs, but countries such as China, Brazil, and India impose high tariffs. Trump had said that India imposes the highest tariffs and that American businesses have cited high tariffs as a challenge in the Indian market. “Perhaps the most important element of my plan to make America extraordinarily wealthy again is reciprocity. It’s a word that’s very important in my plan because we generally don’t impose tariffs. I started that process, it was so great, with the vans and the small trucks, etc.,” Trump said. Recalling his meeting with representatives of Harley-Davidson motorcycles during his presidency, Trump said that the company cited 150 per cent tariffs as a key challenge to doing business in India. “India is a very big charger. We have a great relationship with India. I did. And especially with the leader, Modi. He’s a great leader… I think they probably charge more than in many ways, China. But they do it with a smile,” he told members of the Detroit Economic Club. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, specializing in economic policy and financial regulations. With over five years of experience in business journalism, he provides critical coverage of the frameworks that govern India's commercial landscape. Expertise & Focus Areas: Mishra’s reporting concentrates on the intersection of government policy and market operations. His core beats include: Trade & Commerce: Analysis of India's import-export trends, trade agreements, and commercial policies. Banking & Finance: Covering regulatory changes and policy decisions affecting the banking sector. Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India's leading financial news organizations. His background includes tenures at: Mint CNBC-TV18 This diverse experience across both print and broadcast media has equipped him with a holistic understanding of financial storytelling and news cycles. Find all stories by Ravi Dutta Mishra here ... Read More