Government of India has increased the import duty of bikes having engine capacity over 800cc from 60 per cent to 75 per cent. The market of high-end performance bikes had started to gain momentum in past two years but this step might result in a slowdown in the segment. We know that companies are only allowed to import bikes above 800cc and below this they have to assemble bikes locally in India. The government's intention behind this step is to encourage local assembly of these bikes which means establishment of factories, employment for a larger labour force and higher investment. Though the decision might result in an initial slowdown, it will be beneficial.
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Shreyans, the official and exclusive importer for Bombardier Recreational Products, Ducati, Ferrari and Maserati in India, says, "The increase in import duties on CBU's and bikes over 800cc is indeed going to affect the growth of the automobile industry. A move which provided impetus to the industry, already under pressure, was needed. While aspirational products like Ferrari and Ducati may not have an immediate effect on demand, it may slow down the long range plan for India."
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