Two-wheelers brought to India via the CKD route now face 5 percent more tax.

Duty on CKD for two-wheelers has risen from the existing 10 percent to 15 percent post the recent budget. CKD kits used to attract much lower duties than CBUs, so manufacturers had earlier switched to this method of assembly. International brands like Triumph Motorcycles, Harley-Davidson, Honda, Suzuki, Kawasaki, Benelli and Hyosung all use the CKD route. Now, prices of two-wheelers from these brands may just increase, depending on their retail price.

Company officials for these brands are still working on the exact impact on prices for their offerings. Vimal Sumbly, MD of Triumph Motorcycles India, said prices of the company’s two-wheelers will see a hike between Rs 30,000 to Rs 1 lakh, depending on the model.

The reasoning given by Arun Jaitley, our country’s Finance Minister, for the increase in tax is to encourage manufacturers to build more here as part of the PM’s “Make in India” Initiative.

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