As India’s premium motorcycle market grapples with a steep 40 per cent GST on bikes above 350 cc, Ducati India is pinning hopes on the India–EU Free Trade Agreement (FTA), which it sees as a potential game-changer for the luxury biking segment.
The Italian superbike maker said the sharp increase in GST has added pressure on an already niche market. A favourable India-EU FTA could help offset recent tax hikes by lowering import duties on high-end motorcycles manufactured exclusively in Italy, providing relief to both manufacturers and customers.
“The impact is not devastating, but it is certainly not positive,” said managing director of Ducati India, referring to the GST increase from 28 per cent to 40 per cent on large-capacity motorcycles. Earlier, Ducati bikes attracted 28 per cent GST plus a 3 per cent cess, taking the effective rate to 31 per cent. The revision has raised Ducati’s tax burden by about nine percentage points.
“We don’t yet know whether the FTA will mean 100 per cent duty relief on motorcycles or something lower, or whether it will be implemented in one step or graded manner,” he said, adding that a clear-cut assessment would only be possible once the pact is formally signed off.
However, he said any positive outcome would directly benefit Ducati’s fully imported, Italy-made models, where customs duties are currently “on the steeper side.” Flagship motorcycles such as the Superleggera and Panigale V4, which are manufactured in Italy, would see the most significant impact.
“Our riders and clients in India will be benefited in a much greater way,” he said, adding that this could push the culture of big biking and track riding in the country.
Despite these headwinds, including GST changes, the E20 fuel transition and a challenging macroeconomic environment, Ducati India’s volumes in the calendar year 2025 remained broadly the same compared with the previous year. The company did not disclose the sales numbers. However, according to industry sources, Ducati sells around 500 to 600 bikes annually.
They also reported strong growth in after-sales, spare parts, accessories and apparel, making 2025 one of its best years for commercial after-sales performance in India. The company operates out of 10 dealerships across the country.
He warned that higher taxation risk is dampening volumes and slowing the growth of big-biking culture in India, a concern echoed by other two-wheeler manufacturers, including Royal Enfield.
Industry bodies such as Siam are currently engaging with the government to seek relief, arguing that sustained high taxes could further constrain demand in a segment that is still evolving.
With limited scale to absorb cost increases, Ducati has passed on the entire price hike to customers. “Despite the price increase, our clients have continued to buy, and for that I am grateful,” he said, adding that while enthusiasm for premium motorcycles remains intact, higher prices are influencing purchase timing and capital allocation decisions.
The company also plans an expansion of its India portfolio in 2026, with multiple new launches in the pipeline. These include Ducati’s entry into the motocross segment, updated versions of models such as the Monster, DesertX and Hypermotard, and a range of limited-edition collaboration motorcycles. While Ducati has no immediate plans to localise assembly in India, it continues to source several components from Indian suppliers.
“India already plays a significant role in the making of a Ducati motorcycle,” he said, adding that the brand remains confident about long-term growth in the country, provided policy conditions turn more supportive.
