With a hefty 40% Goods and Services Tax (GST) on bikes over 350 cc, Ducati India, the  Indian division of the renowned Italian superbike maker, is navigating a difficult phase in the  nation’s luxury motorbike industry. The firm has high aspirations for the proposed India European Union Free Trade Agreement (FTA), which it feels will drastically alter the future  of luxury motorbikes in India at a time when the market is already specialized and price sensitive. 

The entire financial burden on high-capacity bikes has grown due to the recent increase in  GST, which went from an effective rate of about 31% to 40%. Ducati India claims that the  already limited market has become more complicated as a result of this extra tax burden.  Nonetheless, the business believes that the India-EU Free Trade Agreement (FTA) might be a  useful tool to counteract some of these cost increases, especially by lowering import taxes on  fully assembled bikes made solely in Italy. 

Challenges with taxes in a specialized market 

Bipul Chandra, Managing Director of Ducati India, commented on the GST amendment,  saying that although the effects have not been disastrous, they are undoubtedly negative. In  the past, Ducati bikes were subject to a 3% cess and 28% GST. On-road prices have been  directly impacted by the changed tax system, which has raised the company’s tax exposure by  over nine percentage points. 

Chandra noted that there is still a lack of transparency regarding the India-EU free trade  agreement. Whether the accord will offer complete motorcycle duty reduction, partial  concessions, or a staggered implementation over time is still up in the air. He stated that only  until the deal is fully finalized and its terms are made public will a thorough examination be  feasible. 

FTA advantages for models manufactured in Italy

Ducati’s flagship models, which are entirely imported from Italy, would especially benefit  from any favorable developments under the FTA. If import taxes are lowered, motorcycles  that presently incur hefty customs fees, including the Superleggera and the Panigale V4,  might see the biggest price adjustments. 

Ducati claims that such assistance would help Indian riders and aficionados as well as the  firm, thereby hastening the development of big-bike ownership and track riding culture in the  nation. Reduced hurdles to entry could entice more buyers to think about high-end bikes,  assisting in the segment’s slow growth. 

After-sales strength and business performance 

Despite a number of obstacles, including as the shift to E20 gasoline, changes in the GST,  and more general macroeconomic difficulties, Ducati India’s sales volumes in 2025 were  essentially unchanged from the year before. Although the firm hasn’t released precise  numbers, industry estimates point to 500–600 units sold annually. 

More significantly, Ducati’s after-sales company recorded excellent results. In terms of  commercial after-sales in India, 2025 was one of the company’s finest years because to  growth in riding clothing, accessories, and spare parts. Currently, Ducati supports both sales  and servicing needs through a nationwide network of ten dealerships. 

Industry-wide issues and goals for the future 

Chandra warned that persistently high taxes may stifle volumes and impede the natural  development of India’s big-biking ecosystem, a worry shared by Royal Enfield and other  manufacturers. Industry associations like SIAM are actively interacting with the government,  emphasizing that sustained high tariffs might limit demand in a still-developing market. 

Ducati has passed on the entire price rise to customers due to its limited ability to absorb  increased costs. Higher prices are affecting buying deadlines and financial considerations,  even if buyer enthusiasm is still robust. 

In 2026, Ducati intends to add a number of new models to its lineup in India, including a  foray into the motocross market, updated models such as the Monster, DesertX, and  Hypermotard, and a few limited-edition partnerships. Ducati maintains its involvement with  the local ecosystem by sourcing a number of components from Indian manufacturers, even if  there are no imminent plans for local assembly.