Ministries spar over Harley Davidson’s entry into India

The Ministry of Commerce and the Ministry of Heavy Industries have locked horns over allowing cult motorcyle brand Harley Davidson (HD) to hit Indian roads.

Sources in the Commerce Ministry told Hindustan Times that despite being cleared on emission grounds, the American motorcycles are not able to hit the Indian roads due to the daunting trade barriers.

The Directorate General of Foreign Trade in the Commerce Ministry in a note to the Heavy Industries Ministry wanted to know why the bikes should not be allowed on Indian roads.

The DGFT has sought a clarification on what were the grounds that the bike maker was not being allowed entry into India despite having being cleared on grounds of emission levels.

According to government sources, the DGFT is amending its export-import policy to make way for bikes with engine capacities in excess of 500 cc, but it remains to be seen if the Heavy Industries Ministry gives its nod to the DGFT proposal.

Previously, India had not allowed HD imports as it had no regulations for engines in excess of 500cc. Now, however, India has decided to allow the "big boys" to come in under the Euro III standards followed in Europe.

Harley already has Indian customers who sport bikes including the 883cc Sportster, 1140cc Road King and 1340cc Diana Low Rider. Initially, Harley is expected to roll out its 883cc Sportster. It is expected to launch vehicles priced in the ₹4 lakh to ₹14 lakh range.