Budget 2025: Huge Tariff Cuts On Vehicle Imports

In the Union Budget 2025-26, the government reduced import tariffs on cars and motorcycles, seemingly in response to US President Donald Trump’s criticism of India’s high tariffs. The duty on luxury cars priced above $40,000 has been reduced from 125% to 70%, while premium motorcycles will now face a 70% tariff instead of 100%. Import duties on cheaper vehicles have been halved from 40% to 20%.

For motorcycles imported as completely built-up units, the duty has dropped from 50% to 40%. Semi-knocked down kits will now attract a 20% duty, down from 25%, and completely knocked down units will be taxed at 10%, reduced from 15%.

NDTV Profit earlier reported India’s plan to lower customs duties on 7-8 high-end items, including specialized steel, electronic goods, and luxury motorcycles, following Trump’s remarks labeling India, China, and Brazil as high-tariff countries.