India-US trade deal: Harley, Tesla to benefit, but no risk to desi firms
Lower duties may add speed to Harley, Jeep & Tesla‘s India rideNEW DELHI: US giants Harley Davidson, Jeep and Tesla are the likely big winners of the trade deal with govt offering concessions, without upsetting domestic industry.For Harley Davidson, Donald Trump has won concessions which his predecessors couldn’t get: Zero duty access for 800-1,600cc bikes. Tariffs will go down from the day the framework agreement are implemented, those familiar with the decision said. “The concessions are only for Harley Davidson bikes and not for others,” an official said. There are also concessions for large cars and EVs, a move that may benefit Elon Musk’s Tesla, although full details are currently unavailable. What is currently known is that a specified number of vehicles with over 3,000cc engine capacity will see duty reduced from 110% to 50%. Over next 10 years it will come down to zero. With Ford and GM leaving the Indian market, it is only Jeep that stands to benefit at the moment.
“The deal is a positive step and, once the finer details are in place, it opens up a wide range of opportunities for brands like Jeep. We have a strong portfolio with products positioned above Compass and Meridian, and we are evaluating how these could fit into the Indian market. We are also looking to explore possibilities of exports from India as reduced trade barriers will help enhance manufacturing competitiveness, expand export potential and support seamless integration of our India operations into global supply chains. This creates the possibility of introducing advanced technologies and select global offerings for Indian customers, while we continue to evaluate opportunities in a calibrated manner,” said Shailesh Hazela, MD & CEO, Stellantis India, which has Jeep and Citroen in its portfolio.An industry executive said the volumes in these segments are unlikely to be large. “When it comes to bikes, there is no clash with any of the Indian players. BMW and Honda have bikes in the segment that Harley Davidson operates in, but the volumes are low. Similarly, when it comes to cars over 3,000cc, none of the Indian manufacturers is in that segment and the volumes for Mercedes, BMW, Volkswagen and Skoda are low,” the executive said.
