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You can only import new or used cars that meet Indian rules. Used cars must be less than 3 years old, and all cars must be right-hand drive, follow safety standards, and be imported through selected ports like Mumbai, Chennai, or Kolkata. Some engine sizes and vehicle types are also banned.
Only certain people, like NRIs, foreign nationals, companies, and diplomats, can import vehicles under specific conditions. The process also requires many documents, testing, registration at the RTO, and insurance before the car can be used on Indian roads.
Overall, importing a car to India is possible but expensive, rule-heavy, and time-consuming.
In India, many people import luxury cars from other countries. Because of this, the demand for expensive and luxurious cars has increased. For many people, owning an imported car is a sign of status and success.
But importing a car is not easy. It can be a complicated process, especially when it comes to import charges in India. There are strict rules and high costs involved.
If you want to bring a car into India, you should clearly understand these rules and charges so the process goes smoothly. In this blog, let's understand the import duty on cars, its rates, rules to get a proper understanding.
What is the Car Import Duty in India?
Car import duty is a tax that the Indian government charges on cars brought from other countries. In India, import tax on cars is very high compared to many other countries. It can be around 60% to 165% of the car's value.
For example, if you import a car worth Rs. 50 lakh from another country, you may need to pay an extra Rs. 30 lakh to Rs. 80 lakh as tax and charges before the car is allowed to enter India.
Now, let's understand the car import tax rules in India in detail.
Rules for Importing a Foreign Car
First, let's understand the rules for importing new and used foreign cars into India.
1 Rules to Import a New Car
To import a new car into India, you must follow these rules:
- The car must be brand new. It should not be used, sold, leased, or registered before import.
- The car should be imported from the same country where it was manufactured.
- The car must be made or assembled outside India.
- You can only import the car through sea ports in Mumbai, Kolkata, or Chennai.
- The car must be right-hand drive. Its headlights should light up the left side of the road.
- The speedometer must show speed in kilometres per hour, not miles.
2 Rules to Import a Used Car
To import a used car into India, you must follow these rules:
- The car must be in good condition and safe to drive. It should have a roadworthiness certificate valid for at least 5 years.
- The car should have been registered, leased, sold, or used before import.
- The car should not be more than 3 years old. Always check the manufacturing date before importing.
- The car must be right-hand drive. Its headlights should be made to light the left side of the road.
- The speedometer must show speed in kilometres per hour, not miles.
- Used cars must be imported through sea ports in Mumbai, Kolkata, or Chennai only.
3 Banned Vehicles
Some vehicles are not allowed to be imported into India. You must make sure the vehicle does not fall into these banned categories:
- Cars with engine size between 1,000cc and 2,500cc.
- Scooters with engine size between 250cc and 800cc.
- Heavy two-wheelers or motorbikes with an engine size between 50cc and 500cc.
Importing a Car When Moving to India (Transfer of Residence Rule)
Foreign citizens or Non-Resident Indians (NRIs) can bring one car to India when they move here permanently. The car can be new or old, including a two-wheeler. To do this, you need to follow some rules:
- The person should not have lived in India for the last 2 years before moving.
- They must plan to stay in India for at least 1 year after moving.
- The person should not have used this “transfer of residence” rule in the last 3 years.
- Only one member of a family can use this benefit and must fill out the required application form.
- The car must be brought to India within 6 months of shifting.
- If the car has an engine above 1,600cc, it must be registered for at least 1 year before import.
Who Can Import a Vehicle into India?
| Category | Who Can Import a Vehicle |
|---|---|
| Foreign Nationals and NRIs | People who have not lived in India for at least 2 years and have owned the vehicle abroad for at least 1 year |
| Legal Heirs / Relatives | People who receive a vehicle from someone who has passed away in another country |
| Physically Challenged Individuals | People with disabilities who are allowed to import vehicles under special government rules |
| Business Entities (Indian or Foreign) | Companies in India or foreign companies with offices in India that import vehicles for business use |
| Honorary Consuls | People who can import vehicles with approval from the Ministry of External Affairs |
| Diplomats and Embassies | Diplomats and embassies can import vehicles with special government permission |
| Automobile Companies and Research and Development Teams | Companies that import vehicles for research, testing, or development |
| Tourists and Temporary Visitors | Foreign visitors who bring vehicles for a short time under special permission |
Things to Know Before Importing a Car to India
Importing a car to India can take time and can be a bit complicated. So, it is important to know a few things before you decide to import a vehicle.
Import Duty on Cars in India:
- Cars that cost more than 40,000 US dollars have a very high import duty, usually around 100%.
- Cars that cost less than 40,000 US dollars usually have around 70% import duty.
- Used cars have even higher charges, which can make them very expensive to import.
Registration:
- After the car arrives in India, you must register it at the nearest RTO.
- Registration and road tax are separate from import duty.
- These charges depend on the car's type, model, and price.
Documents Needed to Import a Car in India
Importing a car to India requires many documents. Here are the important ones you should keep ready:
For New Cars
- Certificate showing the car follows Indian rules (CMVR)
- Proof of purchase (bill or invoice)
- Motor insurance policy
- Customs clearance documents
For Used Cars
- Certificate from a testing agency showing the car follows Indian rules
- Motor insurance policy
- Proof that the car is safe to drive (roadworthiness certificate)
- Test reports from authorised agencies after the car arrives in India
Process to Import a Car from Another Country
Importing a car into India involves different steps for new and used vehicles. There are many rules and legal steps to follow, so the process can take time. You must follow all the rules, pay the required duties, and keep all documents ready to avoid delays or problems. Let's understand the basic steps in a simple way.
Rules for Importing a New Car to India
Here are the main rules you need to follow:
Vehicle Requirements
- The car must have a speedometer that shows speed in kilometres per hour.
- The steering wheel must be on the right side (except for bikes and three-wheelers).
- The headlights should be made for driving on the left side of the road.
- The car should be imported from the country where it was made or from a single market like the European Union.
Documents and Rules
- You must have a certificate that shows the car follows Indian rules (CMVR).
- You also need to give a written promise to submit proof of compliance within 6 months.
- You can import the car through ports like Nhava Sheva, Chennai, or Delhi Air Cargo.
Rules for Importing a Used Car to India
The rules for importing a used car are a little different from new cars. Here is a simple explanation:
Vehicle Requirements
- The car should not be more than 3 years old.
- The speedometer must show speed in kilometres per hour.
- The steering wheel should be on the right side (except for bikes and three-wheelers).
- The headlights must be suitable for driving on the left side of the road.
Documents and Rules
- You need a certificate from an approved testing agency to show the car follows Indian rules and is safe to drive for at least 5 years.
- After the car arrives in India, it must be tested again by authorised agencies like VRDE or ARAI.
- Used cars can be imported only through the Mumbai customs port.
Conclusion
Importing a car from another country to India has strict rules. The car must be made in a proper country and should be right-hand drive. It can only be imported through selected ports in India.
Used cars must be less than 3 years old, and some engine sizes are not allowed. NRIs and foreign citizens can bring only one car, but they must follow special rules.
The process needs many documents and has a very high import tax, which can go up to 125% for used cars. After the car arrives, you must register it and also pass safety tests.
FAQs
Importing a car to India is very expensive. The total cost can be around 150% to 200% of the car’s price. This includes taxes, duties, and other charges.
Yes, foreign nationals and NRIs can import a car to India. They must not have lived in India for at least 2 years. In some cases, they must also own the car for at least 1 year before importing it.
A used car must not be older than 3 years from its manufacturing date to be imported into India.
Yes, vintage cars can be imported into India. But the car must be made on or after 1 January 1950. Cars made before this date are not allowed.
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