Harley-Davidson has decided to start assembling three more models of its bikes in India, a move that will allow the company to make significant cuts in prices.

The iconic bike-manufacturer announced that it would start assembling Heritage Softail Classic, Fat Boy, and Fat Boy Special bikes in India.  This way the company will be able to avoid heavy import duties, and cut prices by nearly Rs 4 lakh on these three models.

The company's announcement followed the government's decision to increase customs duty on imported motorcycles from existing 60 per cent to 75 per cent.

Referring to the duty hikes, Harley-Davidson's managing director Anoop Prakash said, "The impact on our pricing will be minimal thanks to our steady focus on developing our completely knocked down (CKD) operations in India since early 2011."

The Harley Davidson Fat Boy will now be available with a price tag of Rs 14.9 lakh (ex-showroom, Delhi), cheaper by Rs 4.55 lakh.  The prices of Fat Boy Special and Heritage Softail Classic will come down from Rs 20.45 lakh and Rs 19.70 lakh to Rs 16.25 lakh and Rs 15.6 lakh, respectively.

Including the three new models, Harley-Davidson will be assembling nine out of its eleven models in India.