[blackwasp]

The Government of India has revised the import duties on motorcycles in completely knocked down (CKD) form as well as completely built-up units (CBU).

Rates for the CKD bikes with all the necessary parts have increased from 10% to 15%, while those with un-mounted preassembled engine, gearbox and transmission have gone down to 25% from the earlier 30% slab.

CBU category slabs have got a steep reduction. Previously, they were taxed at 60% and 75% for bikes with engine capacity lesser than and greater than 800cc respectively. The new slabs now have a flat 50% slab for all CBU bikes with any engine size.

The move should see a drop in the prices of some high-end bikes from manufacturers like Harley Davidson, Ducati, Indian, Triumph, etc. The bikes with local assembly will see a slight increase as most of the manufacturers have started their local assembling.

The notifications can be seen here (revised, old).



Link to the Team-BHP News

[CrAzY dRiVeR]

Before -



After-



Good move and should see the costs of CBU bikes coming less. Hope the sales increase and more brands enter the market with a wider range.

However, a bit negetive for the 'make in India' sentiment as the difference between CKD, SKD and CBU will be drastically reduced.

[mail4ajo]

Originally Posted by CrAzY dRiVeR

However, a bit negetive for the 'make in India' sentiment as the difference between CBD, SKD and CBU will be drastically reduced.

Once manufacturers see demand, hopefully should motivate them to start local production. Wish the 600-800cc class expand beyond what is available now.

[Turbanator]

Will have to see if the manufacturers who were talking about 5 % increase due to change in Customs duties in the recent budget will actually reduce prices by 25 % Honestly, I don't see the reasons for reductions and that too when they have recently increased duties 2 weeks back. Don't know to whom will this be beneficial? Most of the big guys already have assembly units built, some of the manufactures that can have benefits I can think of are BMW, Indian, Ducati.

Wish they do something similar with Cars as well

[CrAzY dRiVeR]

Originally Posted by Turbanator

Some of the manufactures that can have benefits I can think of are BMW, Indian, Ducati.

Even the others have the higher end models under CBU where the numbers wont justify CKD.

Most Triumph models, Kawasaki models specially above Ninja 1000, Suzuki models other than Hayabusa, most high end Harley Davidsons etc were CBU.

[quickdraw]

Well I doubt the government is doing this to be kind to us motorcyclists. Bitter truth is more CKD units were being imported so they just shifted the 5% around. Not to forget the customs duties were are hellish levels, coupled with GST meant the R1 which cost 10.5 lakh in 2010 costs over 30 lakh today. Yes I know the newer model is more expensive and has more gadgets, but do you realise not even 1/3 of that money is going to Yamaha.

[Vishnuk]

Originally Posted by Turbanator

Will have to see if the manufacturers who were talking about 5 % increase due to change in Customs duties in the recent budget will actually reduce prices by 25 %

Most of the big guys already have assembly units built, some of the manufactures that can have benefits I can think of are BMW, Indian, Ducati.

I too hope that they reduce the prices and pass on the benefit to the buyers.
However this won't effect Ducati much, as most of the Ducati models sold in India are manufactured in Thailand and are imported under the Free Trade Agreement with Thailand.

[CrAzY dRiVeR]

Originally Posted by Vishnuk

However this won't effect Ducati much, as most of the Ducati models sold in India are manufactured in Thailand and are imported under the Free Trade Agreement with Thailand.

Thanks for pointing it out. Looks like the FTA with Thailand caps the import duty at 30% as against 75% earlier (and 50% now).

[dextor]

Its Trump effect. Possibility of further reduction of these taxes :-)

http://www.moneycontrol.com/news/bus...n-2507517.html

[libranof1987]

Originally Posted by dextor

Its Trump effect. Possibility of further reduction of these taxes :-)

http://www.moneycontrol.com/news/bus...n-2507517.html

Wow, that is some language to use in Congress!

Looks like no one, not his own party, not world leaders, can predict what he'll say. Given US-India ties that seem to be only getting better, such a sentiment will be quite a fly, even if it is for a rhetoric.

Considering it is Trump, you can't be sure the Indian Govt. will ignore it.

[Thilak29]

US of A - in 90's they rallied for globalization and now turned ultra protectionist, I wonder which bike manufactured in India is getting sold in USA in volumes that makes Trump so upset?

[ani_meher]

With duties getting cut by 33%, a bike >800cc costing 10Lakhs before would be reduced to 8.5 Lakhs. If the bike makers pass on this benefit, suddenly the 6-8 lakh class of CKD bikes such as Ninja650/Versys650/Honda650/Bonneville etc are in a lot of trouble! Also resale value of existing owners will take a tumble.

Is there any <800cc CBU sold in India?

[Red Liner]

Originally Posted by ani_meher

Is there any <800cc CBU sold in India?

No, because under 800 cc bikes are not allowed into the country as cbu to protect domestic manufacturers.

The 750gs is actually a detuned 850cc engine.

I dont think there will be any real impact as such, i think most manufacturers will absorb the tax benefit themselves.

[giri1.8]

I don't see bike makers passing on the benefit to the customer, hope more CBU bikes get launched as a result of this.

something like R6 would sell well, given how sales of 600s have dropped abroad.

[CrAzY dRiVeR]

Originally Posted by dextor

Its Trump effect. Possibility of further reduction of these taxes :-)

http://www.moneycontrol.com/news/bus...n-2507517.html

"And a great gentleman called me from India and he said, we have just reduced the tariff on motorcycles, reduced it down to 50 per cent from 75, and even 100 per cent," Trump said in an apparent reference to his last week's conversation with Prime Minister Modi.

"We have -- if you are Harley Davidson, you have 50 to 75 per cent tax, tariff to get your motorcycle, your product in. And yet they sell thousands and thousands of motorcycles, which a lot of people don't know, from India into the United States. You know what our tax is? Nothing," he told the lawmakers and his other Cabinet colleague.

Don't know whether to be shocked at the aggression used , or to be rejoiced at the prospects of reduced taxation that this could bring.

But yes - whatever reduction happened looks like a direct effect of US pressure.