Triumph Motorcycles is rethinking its sales strategy in India. The company might opt to go for completely-built-up (CBU) units rather than assembling its bikes at their Haryana plant.
The company was forced to rethink its strategy after the government increased the custom duties of CKD vehicles from 10 per cent to 15 per cent. Along with this, there was an increase of duties on certain parts from 7.5 per cent to 15 per cent. This new policy change has a big impact on Triumph as close to 90 per cent of its India range is assembled in India. Its other rivals like the Ducati are at an advantage here. The Ducati imports majority of its bikes from Thailand, and thus benefits from FTA which attracts very less custom duties.
Triumph says it had the option of launching fully imported bikes from Thailand, but it went on to setup a plant in India. But unfortunately, this has backfired and the Indian arm of the British manufacturer might have difficulties in attracting more investment from its UK headquarters. The British bike maker has written to the ministry of finance but has not received any response yet.
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