It all began on a lovely day when a gentleman from India informed Donald Trump about the reduction in taxes on CBU’s has been reduced down to 50%. Trump, after receiving the call told the media that Thousands and Thousands of Indian bikes are sold in the US and they don’t even charge an extra dime for them. On the other hand, Harley-Davidson has just one more plant outside of US, where they manufacture motorcycles i.e. in India. Since the company is manufacturing the bikes (Street 500, Street 750 and Street Rod) in India, then the Indian government should abolish the import tariffs and sell the motorcycles in the same price at which they are being sold in the USA. This was the scene on the west side of the world. Coming back to India, on February 12th, 2018, the import duty on CBU’s was slashed down to 50% from 60% for models of 800cc or less and 50% from 75% for models of 800cc or more. According to President Trump, there shouldn’t be any import duties on CBU’s as they don’t have it, but the Indian government is taking a more restrictive approach to foreign trade. For us, the imported motorcycles will get a little cheap but as cheap as they should be.
Trump’s statement is based on the fact that the Royal Enfield motorcycles sell their products in America without even giving a dime to the US government. As a result, he suggested that if India isn’t going to reduce the tax on our products in their market, then they should start taxing the motorcycles which India sends over to the US to sell.
Caught in this fire are the Royal Enfield officials as they are being claimed to have sold “thousands and thousands” of motorcycles in the US, which they obviously haven’t and the impending launch of their beloved “650 Twins” has been caught under dark clouds. If the US decides to start charging for import duties on Motorcycles entering their market, then the Royal Enfield’s strategy of selling an affordable neo-retro café racer may become futile.
Donald Trump is wrong in stating that India sells a lot of motorcycles in the US, but he is definitely right in the statement that India should cut down the import duties on CBU’s. This will not only help Several thousands of Indians in accessing a good motorcycle brand but will also ensure that we, the everyday office going, hardworking, underpaid Indians, don’t pay for the same through our nose.
Because be it Nike’s Jordan, a PlayStation 4 or a Harley-Davidson, we always end up paying more than the actual price. What do you have to say on this? do leave your comments in the comment section below and for everything about 2 wheelers, stay tuned to BIkesMedia.
By: Yetnesh Dubey