Go Back   Team-BHP > BHP India > Motorbikes > Superbikes & Imports


Reply
 
Thread Tools Search this Thread
Old 13th February 2018, 18:39   #1
Senior - BHPian
 
blackwasp's Avatar
 
Join Date: Apr 2015
Location: Navi Mumbai
Posts: 1,387
Thanked: 7,973 Times
Default Import duties on bikes revised, CBUs to cost less

The Government of India has revised the import duties on motorcycles in completely knocked down (CKD) form as well as completely built-up units (CBU).

Rates for the CKD bikes with all the necessary parts have increased from 10% to 15%, while those with un-mounted preassembled engine, gearbox and transmission have gone down to 25% from the earlier 30% slab.

CBU category slabs have got a steep reduction. Previously, they were taxed at 60% and 75% for bikes with engine capacity lesser than and greater than 800cc respectively. The new slabs now have a flat 50% slab for all CBU bikes with any engine size.

The move should see a drop in the prices of some high-end bikes from manufacturers like Harley Davidson, Ducati, Indian, Triumph, etc. The bikes with local assembly will see a slight increase as most of the manufacturers have started their local assembling.

The notifications can be seen here (revised, old).

Import duties on bikes revised, CBUs to cost less-1969377_982005655148822_1497478207792479984_n.jpg

Link to the Team-BHP News

Last edited by blackwasp : 13th February 2018 at 18:43.
blackwasp is online now   (17) Thanks Reply With Quote
Old 13th February 2018, 19:01   #2
Distinguished - BHPian
 
CrAzY dRiVeR's Avatar
 
Join Date: Jun 2006
Location: Bangalore / TVM
Posts: 10,120
Thanked: 20,674 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Before -

Import duties on bikes revised, CBUs to cost less-screenshot_20180213190028.png

After-

Import duties on bikes revised, CBUs to cost less-img20180213wa0047.jpg

Good move and should see the costs of CBU bikes coming less. Hope the sales increase and more brands enter the market with a wider range.

However, a bit negetive for the 'make in India' sentiment as the difference between CKD, SKD and CBU will be drastically reduced.

Last edited by ampere : 13th February 2018 at 20:20. Reason: Typo Fixed
CrAzY dRiVeR is offline   (10) Thanks Reply With Quote
Old 13th February 2018, 20:15   #3
Senior - BHPian
 
mail4ajo's Avatar
 
Join Date: Mar 2006
Location: San Antonio, TX
Posts: 1,861
Thanked: 261 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Quote:
Originally Posted by CrAzY dRiVeR View Post
However, a bit negetive for the 'make in India' sentiment as the difference between CBD, SKD and CBU will be drastically reduced.
Once manufacturers see demand, hopefully should motivate them to start local production. Wish the 600-800cc class expand beyond what is available now.
mail4ajo is offline   (1) Thanks Reply With Quote
Old 13th February 2018, 20:21   #4
Distinguished - BHPian
 
Join Date: Mar 2011
Location: Back to Chndgrh
Posts: 2,580
Thanked: 4,296 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Will have to see if the manufacturers who were talking about 5 % increase due to change in Customs duties in the recent budget will actually reduce prices by 25 % Honestly, I don't see the reasons for reductions and that too when they have recently increased duties 2 weeks back. Don't know to whom will this be beneficial? Most of the big guys already have assembly units built, some of the manufactures that can have benefits I can think of are BMW, Indian, Ducati.

Wish they do something similar with Cars as well
Turbanator is online now   (4) Thanks Reply With Quote
Old 13th February 2018, 21:11   #5
Distinguished - BHPian
 
CrAzY dRiVeR's Avatar
 
Join Date: Jun 2006
Location: Bangalore / TVM
Posts: 10,120
Thanked: 20,674 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Quote:
Originally Posted by Turbanator View Post
Some of the manufactures that can have benefits I can think of are BMW, Indian, Ducati.
Even the others have the higher end models under CBU where the numbers wont justify CKD.

Most Triumph models, Kawasaki models specially above Ninja 1000, Suzuki models other than Hayabusa, most high end Harley Davidsons etc were CBU.
CrAzY dRiVeR is offline   (3) Thanks Reply With Quote
Old 13th February 2018, 22:50   #6
Senior - BHPian
 
quickdraw's Avatar
 
Join Date: Mar 2008
Location: New Delhi
Posts: 1,062
Thanked: 1,386 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Well I doubt the government is doing this to be kind to us motorcyclists. Bitter truth is more CKD units were being imported so they just shifted the 5% around. Not to forget the customs duties were are hellish levels, coupled with GST meant the R1 which cost 10.5 lakh in 2010 costs over 30 lakh today. Yes I know the newer model is more expensive and has more gadgets, but do you realise not even 1/3 of that money is going to Yamaha.
quickdraw is offline   (5) Thanks Reply With Quote
Old 14th February 2018, 09:48   #7
BHPian
 
Vishnuk's Avatar
 
Join Date: Nov 2017
Location: Bangalore
Posts: 60
Thanked: 114 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Quote:
Originally Posted by Turbanator View Post
Will have to see if the manufacturers who were talking about 5 % increase due to change in Customs duties in the recent budget will actually reduce prices by 25 %

Most of the big guys already have assembly units built, some of the manufactures that can have benefits I can think of are BMW, Indian, Ducati.
I too hope that they reduce the prices and pass on the benefit to the buyers.
However this won't effect Ducati much, as most of the Ducati models sold in India are manufactured in Thailand and are imported under the Free Trade Agreement with Thailand.
Vishnuk is offline   (7) Thanks Reply With Quote
Old 14th February 2018, 09:53   #8
Distinguished - BHPian
 
CrAzY dRiVeR's Avatar
 
Join Date: Jun 2006
Location: Bangalore / TVM
Posts: 10,120
Thanked: 20,674 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Quote:
Originally Posted by Vishnuk View Post
However this won't effect Ducati much, as most of the Ducati models sold in India are manufactured in Thailand and are imported under the Free Trade Agreement with Thailand.
Thanks for pointing it out. Looks like the FTA with Thailand caps the import duty at 30% as against 75% earlier (and 50% now).
CrAzY dRiVeR is offline   (1) Thanks Reply With Quote
Old 14th February 2018, 12:59   #9
BHPian
 
Join Date: Aug 2016
Location: Bangalore
Posts: 66
Thanked: 39 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Its Trump effect. Possibility of further reduction of these taxes :-)

http://www.moneycontrol.com/news/bus...n-2507517.html
dextor is offline   (4) Thanks Reply With Quote
Old 14th February 2018, 13:31   #10
Distinguished - BHPian
 
libranof1987's Avatar
 
Join Date: Sep 2010
Location: All over!
Posts: 4,349
Thanked: 4,370 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Quote:
Originally Posted by dextor View Post
Its Trump effect. Possibility of further reduction of these taxes :-)

http://www.moneycontrol.com/news/bus...n-2507517.html
Wow, that is some language to use in Congress!

Looks like no one, not his own party, not world leaders, can predict what he'll say. Given US-India ties that seem to be only getting better, such a sentiment will be quite a fly, even if it is for a rhetoric.

Considering it is Trump, you can't be sure the Indian Govt. will ignore it.
libranof1987 is offline   (2) Thanks Reply With Quote
Old 14th February 2018, 14:19   #11
BHPian
 
Thilak29's Avatar
 
Join Date: Apr 2011
Location: KL 14 / KA 05
Posts: 488
Thanked: 493 Times
Default Re: Import duties on bikes revised, CBUs to cost less

US of A - in 90's they rallied for globalization and now turned ultra protectionist, I wonder which bike manufactured in India is getting sold in USA in volumes that makes Trump so upset?
Thilak29 is offline   (1) Thanks Reply With Quote
Old 14th February 2018, 15:20   #12
Senior - BHPian
 
Join Date: Oct 2008
Location: Pune
Posts: 1,269
Thanked: 1,752 Times
Default Re: Import duties on bikes revised, CBUs to cost less

With duties getting cut by 33%, a bike >800cc costing 10Lakhs before would be reduced to 8.5 Lakhs. If the bike makers pass on this benefit, suddenly the 6-8 lakh class of CKD bikes such as Ninja650/Versys650/Honda650/Bonneville etc are in a lot of trouble! Also resale value of existing owners will take a tumble.

Is there any <800cc CBU sold in India?
ani_meher is offline   Reply With Quote
Old 14th February 2018, 15:37   #13
Senior - BHPian
 
Red Liner's Avatar
 
Join Date: Aug 2006
Location: Bangalore
Posts: 2,420
Thanked: 1,518 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Quote:
Originally Posted by ani_meher View Post

Is there any <800cc CBU sold in India?
No, because under 800 cc bikes are not allowed into the country as cbu to protect domestic manufacturers.

The 750gs is actually a detuned 850cc engine.

I dont think there will be any real impact as such, i think most manufacturers will absorb the tax benefit themselves.

Last edited by Red Liner : 14th February 2018 at 15:43.
Red Liner is offline   Reply With Quote
Old 14th February 2018, 19:26   #14
BHPian
 
giri1.8's Avatar
 
Join Date: Jul 2012
Location: Chennai
Posts: 580
Thanked: 479 Times
Default Re: Import duties on bikes revised, CBUs to cost less

I don't see bike makers passing on the benefit to the customer, hope more CBU bikes get launched as a result of this.

something like R6 would sell well, given how sales of 600s have dropped abroad.
giri1.8 is offline   Reply With Quote
Old 14th February 2018, 22:51   #15
Distinguished - BHPian
 
CrAzY dRiVeR's Avatar
 
Join Date: Jun 2006
Location: Bangalore / TVM
Posts: 10,120
Thanked: 20,674 Times
Default Re: Import duties on bikes revised, CBUs to cost less

Quote:
Originally Posted by dextor View Post
Its Trump effect. Possibility of further reduction of these taxes :-)

http://www.moneycontrol.com/news/bus...n-2507517.html
Quote:
"And a great gentleman called me from India and he said, we have just reduced the tariff on motorcycles, reduced it down to 50 per cent from 75, and even 100 per cent," Trump said in an apparent reference to his last week's conversation with Prime Minister Modi.

"We have -- if you are Harley Davidson, you have 50 to 75 per cent tax, tariff to get your motorcycle, your product in. And yet they sell thousands and thousands of motorcycles, which a lot of people don't know, from India into the United States. You know what our tax is? Nothing," he told the lawmakers and his other Cabinet colleague.
Don't know whether to be shocked at the aggression used , or to be rejoiced at the prospects of reduced taxation that this could bring.

But yes - whatever reduction happened looks like a direct effect of US pressure.
CrAzY dRiVeR is offline   (2) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
What are the import duties on completely broken down car parts? 1Day Super-Cars & Imports in India 22 20th March 2013 16:50
Kumaon: roads less traveled and forests less visited nilanjanray Route / Travel Queries 21 11th January 2013 12:25
GM India - Hope less? or Aim less? or both? rnidumolu The Indian Car Scene 16 17th September 2012 15:12
different import duties for diffferent vehecles? quattroa4 The Indian Car Scene 2 12th August 2009 22:20
How much does it cost to import my 600 F4 to bangalore. M77 Superbikes & Imports 0 18th September 2006 11:18


All times are GMT +5.5. The time now is 10:41.

Copyright 2000 - 2018, Team-BHP.com
Proudly powered by E2E Networks