Eicher Motor: Shares crash due to government's zero import duty scheme - report claims threat to Royal Enfield (Bullet)!:

The government is considering completely eliminating import duty on premium motorcycles with capacity of more than 750cc. After this report from Bloomberg, Royal Enfield's parent company Eicher Motors has come into focus among investors and market analysts.

Royal Enfield is currently dominant - with over 30% market share in India's premium bike market. The largest player in the 125cc+ segment, 1,000 basis points ahead of the next competitor. 6.9% share of the overall bike market (as of December 2024). So the pressure is bound to come. Royal Enfield vs Harley-Davidson: How are the two brands different?

Speciality	Royal Enfield	Harley-Davidson
engine	350–650cc flagship	750cc+ Touring Focused
utility	Better, lighter bikes in cities	Suitable for highways and long rides
price	More economical	Premium Segment
Maintenance	Easy, cheap	Expensive and technical

But if the duty becomes zero then... Global companies like Harley-Davidson, BMW, Ducati will get a level playing field. Foreign brands are known for fast, big and stable bikes - which appeal to Indian riders who like touring.

Harley-Davidson's possible return to India - It was out of India in 2020 - Reason: low sales + high import duty. Launched X440 in 2023 in partnership with Hero MotoCorp. Now if the duty becomes zero, then both the prices and competition of Harley's premium bikes may increase.

What's next for Eicher Motors - Innovation and pricing may have to be accelerated. Brand loyalty and dealer network are its strengths. But competing with global giants will no longer be easy. If the government's proposal is implemented, Royal Enfield will have to make a new strategy. If the government removes the import duty, India's premium bike market can come into high gear. This change can be a challenge as well as an opportunity for Eicher Motors.