Most of the 3,000 Harleys sold in India last year did not incur any tariffs. That's because they were cheaper, low-powered models made in a factory outside New Delhi. Even many of the fancier bikes sold here were assembled from kits of imported parts, which are taxed at 15 percent, not 50 percent. Harley-Davidson's biggest problem in India is a lack of demand. Harleys are bulky and heat up a rider's legs, making them a poor fit for the country's traffic-choked roads and sweltering climate. And they are expensive. With an average annual income of $1,700, people here overwhelmingly favor small, cheap bikes, some of which cost less than $1,000. Harley's iconic big cruisers cost more than most cars, with its top model exceeding $87,000 in Mumbai after all taxes and licensing fees. Darryl Mathias, operations manager for the Mumbai dealership, Seven Islands Harley-Davidson, said sales had dropped about 50 percent in the past two years.