Business | Updated Jun 20, 2007 at 09:07am IST

Harley Davidson to cruise into India

Swati Khandelwal, CNN-IBN

New Delhi: Will it or wont it cruise into India? US bike maker Harley Davidson has kept the Indian market guessing for long. But now the company has clarified and said that it will roar into India but wants the government to ease up on duties.

Currently all imported bikes attract a basic 60 per cent duty coupled with additional and special duties taking the total import duty to around 100 per cent, not a figure the American motorcycle major is willing to ride over.

Several rounds of negotiations have taken place with the government but there has been no breakthrough yet.

“India is a very important market for us. We have not scrapped the plans for Indian entry duty structure high it comes to about 100 per cent, which is a lot, trying to get that lowered,” says VP, Government Affairs, Harley Davidson, Timothy Hoelter.

The other speed breaker was emission norms but the government’s move to accept Euro-III emission norms for large-engine motorcycles has given them relief.

Till recently, India didn’t specify emission standards for motorcycles with engine capacity above 500 cc, effectively ruling out the import of such bikes from international manufacturers such as Harley Davidson, Yamaha Motor Co. Ltd. and Suzuki Motor Corporation.

Harley Davidson models have engine capacity of 663cc to 1600 cc, their popular touring bike if it were to be imported will cost Rs 15 lakh, thanks to the 100 per cent import duty - that’s how much you would pay to get two Honda Citys or five Maruti Altos.

But if the government doesn’t budge, only very committed Harley lovers or men with really deep pockets will ride the beast.

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