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India-EU Trade Deal Could Make Superbikes Cheaper: BMW, Ducati, KTM to Benefit
The India-EU Free Trade Agreement (FTA) has been finalised and is expected to lower prices across the automotive sector. While most attention has been on European cars, the agreement could also significantly reduce the prices for high-performance European motorcycles from brands such as BMW, Ducati, Aprilia, and KTM.
The Free Trade Agreement between India and the European Union further opens the Indian market to many European manufacturers. With the FTA now in place, imported motorcycles from Europe could become more accessible to Indian buyers.
However, it is important to note that only motorcycles manufactured within the EU will qualify, and they will share the limited annual quota with passenger cars. EVs are also excluded from this trade deal for the first five years.
Brands such as KTM, BMW Motorrad, Ducati, Aprilia, and Piaggio stand to benefit the most, potentially making premium and flagship motorcycles available at significantly lower prices. The biggest winners will be the supersport and premium adventure motorcycles that could find many new homes in India.
India-EU Trade Deal Benefits These European Bike Brands
Ducati - Italy
Ducati is a dream brand for many Indian youngsters and motorcycle enthusiasts. The brand currently imports many of its models from Thailand and Italy, attracting import duties of up to 110%. With the new trade agreement, flagship Ducati motorcycles such as the Superleggera V4, Panigale V4R, and the Panigale V4 Tricolore, which are imported from Italy, could see significant price reductions.
BMW Motorrad - Germany
German motorcycle manufacturer BMW Motorrad is also expected to benefit from the India-EU FTA. Apart from the locally produced 310 series, most of BMW's larger-capacity motorcycles are imported as CBUs from Berlin, Germany. Models such as the R 12, R 18, F 900 GS, S 1000 XR, S 1000 RR, S 1000 R, R 1250 RT, R 1300 GS, K 1600 GTL, and R 18 Transcontinental could become more affordable and competitively priced.
Aprilia - Italy
Aprilia already manufactures select models in India, but the FTA could bring the brand's flagship motorcycles, such as the RSV4, Tuono V4, RS 660, and Tuono 660, at more accessible prices. These High-performance models are imported via CBU from Italy to India on an order basis.
KTM - Austria
Bajaj Auto-owned KTM is a popular premium brand in India, known for its 200, 250, and 390 series motorcycles. However, its flagship models, such as the 1290 and 1390 series, are currently imported as CBUs from Austria. Under the new trade agreement, these motorcycles could become more affordable, helping KTM to expand its premium portfolio in India.
In the future, European motorcycle brands such as Norton Motorcycles, MV Agusta, Benelli, Moto Guzzi, Moto Morini, and Brixton Motorcycles could also benefit from the agreement, potentially leading to more variety and competition in the Indian two-wheeler market.
What Does This Mean for Indian Brands?
This trade deal also opens up greater access to the European market for Indian two-wheeler manufacturers. Brands such as Royal Enfield, TVS Motor Company, Hero MotoCorp, and Bajaj Auto already export motorcycles to several European countries.
The India-EU FTA is expected to increase export opportunities for these brands, helping them expand their footprint across Europe. This could also enable increased investment in R&D and the development of world-class motorcycles that meet global standards.
Note: The actual benefits will depend on how the agreement is rolled out in phases and the final import duty details announced by the government.
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