Big bike sales climbing

Sales of high-end, imported bikes doubled within weeks following the government's announcement to reduce import duty on completely built unit (CBU) motorcycles.

In the 500-1,000 cc segment, 1,391 units were sold during February and March 2018, which is 12% higher compared to the same period last year. In the 1000 cc and above segment, 500 units were sold during this period, up by 41% compared to last year. 

In February 2018, the government reduced the import duty on CBU bikes with engines larger than 500 cc to 50%. This resulted in a price cut of Rs. 1-5 lakh depending on the segment. Earlier, bikes with engine capacities ranging from 500-800 cc attracted 65% import duty, while those with engines larger than 800 cc attracted 75% duty. Import duty on completely knocked down (CKD) kits was also reduced from 30% to 25%.

According to Panjaj Dubey, Managing Director, Indian Motorcycle, the company's volumes had dropped by 20-30% last year. However, in 2018, the bike maker is expecting a growth of 60-70%.

Tax on locally assembled bikes has been increased by 5.75% and this has adversely affected brands like Triumph that build majority of their motorcycles locally.

Source: ET Auto