The proposed move could reduce the landed cost of premium international brands, such as Harley-Davidson, thereby increasing competition in the luxury motorcycle segment.
Eicher Motors, the parent company of Royal Enfield, reacted sharply to the development, as Royal Enfield's flagship "Bullet" may face stiffer competition from globally renowned players.
American motorcycle brand Harley-Davidson, which exited the Indian market in 2020 due to low sales attributed in part to high import duties, could potentially re-enter with a significant pricing advantage if the proposed duty cut is implemented.
Meanwhile, Royal Enfield has been expanding its presence in the premium motorcycle segment with models like the Interceptor 650 and Continental GT 650, which could now face heightened competition under the proposed regime.
Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo—Volvo Eicher Commercial Vehicles, which operates in India's commercial vehicle space.
On a consolidated basis, net profit of Eicher Motors rose 17.52% to Rs 1170.50 crore while net sales rose 18.77% to Rs 4888.11 crore in Q3 December 2024 over Q3 December 2023.