The Union Budget 2025 has announced a reduction in import duties on motorcycles, including CBU (Complete Built Units), SKD (Semi-Knocked Down), and CKD (Completely Knocked Down) units. The reduction is particularly significant for larger motorcycles with engine capacities exceeding 1,600cc. This move is expected to make premium and big bikes more affordable in India. This article covers the impact of these changes and including specifications, and prices.
Key Changes in Import Duty (2025 Budget)
| Category | Previous Duty | New Duty |
|---|
| CBU (Motorcycles ≤1,600cc) | 50% | 40% |
| SKD (Motorcycles ≤1,600cc) | 25% | 20% |
| CKD (Motorcycles ≤1,600cc) | 15% | 10% |
| CBU (Motorcycles >1,600cc) | 50% | 30% |
| SKD (Motorcycles >1,600cc) | 25% | 20% |
| CKD (Motorcycles >1,600cc) | 15% | 10% |
Impact on Prices:
- Motorcycles ≤1,600cc: With the reduction in duty, motorcycles such as entry-level premium models (e.g., smaller Harley-Davidson or Ducati variants) will likely see a price drop, making them more affordable for Indian buyers.
- Motorcycles >1,600cc: For larger motorcycles (e.g., Harley-Davidson, BMW, and Ducati), the reduction will have an even more pronounced effect, making the models with higher engine capacity significantly more affordable.
Specifications and Features Overview:
| Feature/Specification | Motorcycles ≤1,600cc | Motorcycles >1,600cc |
|---|
| Engine Capacity | ≤1,600cc | >1,600cc |
| Duty Reduction on CBU | 50% to 40% | 50% to 30% |
| Duty Reduction on SKD | 25% to 20% | 25% to 20% |
| Duty Reduction on CKD | 15% to 10% | 15% to 10% |
| Impact on Price | Moderate price reduction | Significant price reduction |
| Model Examples | Harley-Davidson Street 500, Ducati Scrambler 800 | Harley-Davidson Fat Boy, BMW R 1250 GS |
15 FAQs About the 2025 Budget’s Import Duty on Motorcycles:
- What is the new import duty on motorcycles in India as per the 2025 Budget?
- The duty on CBUs for motorcycles ≤1,600cc is reduced from 50% to 40%, and for those >1,600cc, it’s reduced from 50% to 30%.
- Which types of motorcycles will benefit from this duty reduction?
- Both smaller (≤1,600cc) and larger (>1,600cc) motorcycles will benefit, with a larger reduction for motorcycles exceeding 1,600cc.
- How will the price of Harley-Davidson motorcycles change after this duty reduction?
- Prices for Harley-Davidson motorcycles, especially the bigger models, will likely reduce due to the lowered import duty.
- Is the duty reduction applicable to all motorcycles?
- Yes, the reduction applies to CBUs, SKDs, and CKDs across both small and large motorcycles.
- What are CBU, SKD, and CKD?
- CBU: Complete Built Unit – Fully assembled motorcycles.
- SKD: Semi-Knocked Down – Partial assembly needed in India.
- CKD: Completely Knocked Down – Most components come separately and are assembled locally.
- How does the new duty affect smaller bikes (≤1,600cc)?
- The duty on CBU units is reduced from 50% to 40%, leading to a moderate price reduction for smaller bikes.
- What impact does the duty cut have on big bikes (>1,600cc)?
- For big bikes, the price drop will be more significant due to the reduction in CBU duties from 50% to 30%.
- Will motorcycles with higher engine capacities be more affordable?
- Yes, larger bikes such as Harley-Davidson Fat Boy or BMW models will become more affordable.
- Will all manufacturers reduce the prices of their models?
- While manufacturers may adjust their prices, the final cost depends on their internal pricing strategies.
- How does the reduced duty on SKD and CKD units affect the pricing of motorcycles?
- SKD and CKD units also benefit from reduced duties, leading to a lower overall price for models assembled in India.
- Is this duty reduction likely to encourage more people to buy premium motorcycles?
- Yes, with a significant price drop, more customers are expected to opt for premium motorcycles.
- Does this affect the prices of cars as well?
- Yes, though not as significantly as motorcycles, car duties have also been reduced, though the exact price impact isn’t clear yet.
- How much is the reduction for motorcycles in the premium segment?
- Premium motorcycles with engine capacities >1,600cc will see a duty reduction of 20%, significantly impacting their prices.
- Does this budget move aim to promote the sale of foreign motorcycles?
- Yes, this move is expected to increase the affordability of foreign motorcycles in the Indian market.
- Is there any change in the duty on cars?
- Yes, though the duty on cars has been reduced, it is unclear whether the final cost will change due to the addition of AIDC.
