Eicher Motors Braces for Global Competition as Import Duty Cut on High-End Bikes Looms

India’s premium motorcycle segment may witness a major disruption as the government is reportedly considering reducing import duties on high-end motorcycles—specifically those with engine capacities of 705cc and above—to zero.

According to a Bloomberg report, this potential policy shift could reshape the competitive landscape in the segment currently dominated by homegrown manufacturer Royal Enfield.

Royal Enfield’s Stronghold Faces Global Challenge

Royal Enfield, a unit of Eicher Motors, holds a dominant position in India’s premium motorcycle market with a 6.9% overall share. In the 125cc+ segment, its market share is nearly 30%—about 1,000 basis points higher than its closest competitor.

The company’s appeal stems from the affordability, fuel efficiency, and urban-friendly handling of its bikes, which are especially suited for Indian road conditions.

However, a zero-duty regime could enable the re-entry of global brands like Harley-Davidson, which exited the Indian market in 2020 due to high import tariffs and limited volumes.

Harley’s larger 750cc+ motorcycles are designed for long-distance riding, offering better highway stability, quicker acceleration, and stronger engine performance—features that align closely with Royal Enfield’s value proposition.

Harley-Davidson Eyes Comeback Through Hero Partnership

Despite exiting the market, Harley-Davidson maintained a foothold in India through its strategic partnership with Hero MotoCorp.

The duo launched the X440, a locally manufactured bike from Harley’s stable, produced at Hero’s Neemrana plant in Rajasthan. If import duties are cut, Harley could revive its premium lineup in India with more competitive pricing and a stronger product-market fit.

Stock Movement 

Eicher Motors’ shares were trading 0.76% lower at ₹5,698.85 on Thursday, April 24, 2025, hovering near its 52-week high of ₹5,906. The company currently holds a market capitalisation exceeding ₹1.56 lakh crore.

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