Rejoice this valentines day as your dream motorcycle should get cheaper with the government of India reducing Customs Duty to 50% for imported motorcycles!
Earlier, 800cc or less motorcycles used to attract 60% duty, while 800+cc bikes attracted 75%. Now the rates for both these categories have been slashed to 50%. This is only on CBUs (Completely Built Units), while CKDs (Completely Knocked Down) have seen a duty reduction from 30 to 25%.
Disassembled engine, transmission and gear box parts will now get more expensive in a bid to promote make in India. The duty has been increased from 10 to 15%. The government hopes to increase the production of parts in India by increasing this duty, since India has a strong component manufacturing industry.
The Central Board of Excise and Customs (CBEC) had issued this notification on the 12th of February.
The motorcycle industry for long has been pushing for a reduction in duty, since there is currently no local manufacturers who need protection and promotion in this segment. We hope that this benefit will be passed down to the end user by the big bike manufacturers.
Statement from Triumph Motorcycles:
Mr. Vimal Sumbly M.D Triumph Motorcycles India said- “ After the budget, this is a great initiative to cut import duties on CBUs, but for CKDs where local assembly is done in India, the import duties are increased by 5% and the FTA remains unchanged. We would urge the government to relook into this area.”
We will keep you updated on the price reductions by the companies as and when it happens.