The India – European Union Free Trade Agreement became official on Jan 27, 2026; this could enable a possible reduction of the harsh impact that European superbikes can bring to one’s finances after waiting so long to purchase a European bik.
The Big Tariff Slash
Duties are presently as follows; 40% on sub-1600cc motorcycles, and 30% for larger motorcycles (After the cuts from the 2025 India Budget); beginning in 2026, the effective date of the FTA, duties will be reduced on an annual basis similar but not as steep of reductions being given to automobiles with respect to their duties going from 110% down to 30-40%.
Details about motorcycles duties have not been finalized—i.e., timelines and quotas—but based on BMW’s January 2026 price increase (of 6% due to Foreign Exchange rates increasing Pro-Avi/Paul residential taxes), reality may be harsher than expected.
Expected Price Drops on Dream Bikes
The projections for savings are between ₹3-8 lakh depending on the bike model. Here are my top four picks and their current and projected prices:
- Ducati Panigale V4: Current price range is ₹32-77 lakh and could be reduced to a possible base price of ₹27-30 lakh.
- BMW S 1000 RR: Current price is between ₹23-29 lakh and could drop to ₹19-20 lakh.
- KTM 1390 Super Duke R: Current launch price is ₹22.96 lakh and projected to decrease to about ₹19 lakh.
- Aprilia RSV4: current price is ₹31 lakh and projected to be approximately ₹26-28 lakh.
These models still have GST (28%), freight charges, and fluctuations in currency value factored into their pricing. No change in pricing for EVs in the first 5 years of ownership.
What This Means for Indian Manufacturers
Here’s something no one seems to be discussing… This deal will specifically benefit Indian companies Hero & TVS. Hero’s release mentions nothing but export potentials into Europe, and the FTA now allows our 250cc+ motorcycles access into EU markets.
TVS’s Chairman further stated that this will have a “tremendous effect on the export of two-wheelers, as well as on their Premium Category”. In other words, they’re planning on selling more motorcycles into Europe while potentially bringing in European technology through this partnership.
Final Take
I learned to be cautious with my anticipated changes to policy. The recent [2021] government budget reduced tariffs on motorcycles over 1600cc from 50 percent to 30 percent, an amazing opportunity for the motorcycle community. Just as soon as the reduced tariffs were announced, BMW raised prices on several of their models by 6 percent, using currency exchange rates as an excuse. It is always difficult to know when I will want to purchase a specific motorcycle model, as the situation constantly changes.
This time, I feel that the EU Free Trade Agreement will change the way we buy and sell motorcycles rather than the current practice in the United States; and they will be cheaper (at least compared to automobiles) over the next three to five years if we receive the same tariff rates as automatic vehicles. However, it is possible that by 2028 to 2029, I will be able to purchase a Ducati Panigale V4 that currently costs more than ₹36,000 in Pune for less than ₹28,000 to ₹30,000. Although that is still a lot of money for a motorcycle, it will probably be less than a second home mortgage.
So, while I wait, there seems to be at least a glimmer of significance.
