HOW TO IMPORT CARS IN INDIA

Even if the Indian four-wheeler market offers a wide range of expensive cars, importing a car from abroad brings a unique appeal.

Not only enthusiasts, but celebrities, cricketers, and business persons often import cars from abroad to preserve their prestige in India. 

Admirers of luxurious cars are always desperate to ship modern vehicles from foreign countries. They can invest efforts to import their dream car from abroad to fulfill their desire. Advance technologies and sleek designs of the cars fascinates them. Moreover, they enjoy its smooth driving experience.

As a car is not a backpack material, the procedure for importing a vehicle from overseas nations is a bit complex. Because it has to follow a rigid set of rules. But a passionate person can surpass these complexities. They can spend both time and money to get their dream come true.

 

 

Today, we will be discussing how to import expensive cars in India from external territories.

 

Rules to Import New Car to India

Here are the rules to import a brand-new car to India from foreign countries-

• The car should be produced and assembled in the exterior of India.
• The car must be imported only from the country where it was manufactured.
• The car must be brand new from all aspects. It should not be registered, sold, loaned, or leased before being imported to India.
• The vehicle's control should be on the right side.
• The headlights of the car must illuminate the left side of the road.
• The speedometer should display the speed not in miles but in kilometres.
• Naval Blocks in Mumbai, Chennai, and Kolkata are the only mode to import cars. So, only these ports are allowed to import vehicles.

 

Rules to Import Used Car to India

The rules for importing used cars to India are strict. Also, the process to bring cars from abroad is time consuming. Let’s understand the guidelines for it-

• A used car’s manufacturing year should not be longer than 3 years.
• The vehicle ought to be a right-hand drive.
• The speedometer and headlight rules are the same as a brand new car.
• The car must be brought to India only via specific naval blocks.
• Either the car should be loaned, leased, registered, or sold.
• The car must be safe to travel and certified for a minimum of 5 years.

 

Car Import Rules In Case of Transfer of Residence

NRI’s can import their vehicle 2-wheeler or 4 wheeler to India if they are planning to shift permanently to India. After importing, they need to obey following conditions-

• Before the transfer of vehicles to India, NRI should not have lived in India for at least 2 years.
• Individuals must have planned to spend a whole year after the vehicle transfer.
• Only a single member of the family can take over the transfer process.
• Importing a vehicle back to India should be done within the six months of shifting.
• After the transfer, individuals are forbidden to sell their vehicle for at least two years.
• No matter what type of vehicle an individual is importing, whether it be new or it be second hand.

 

Process to Import Car in India from Other Countries

In two ways you can import a car from abroad. Direct from the manufacturers or via agents. You need to follow a series of steps. 

If you are importing a car directly from the manufacturer, then you are asked to arrange the necessary documents. Contrary, an agent can assist you till the car gets registered in India after import.

Importing a car to India is a prolonged process. So, initially, it is important to understand certain factors.

Import Duties on Car Import in India

The import duties on cars are variable and depend on the Cost, Insurance, Freight (CIF) value.  100% import duty is there for the SUV cars in India with a CIF value of greater than $40,000 (Rs.34,66,106)*. Cars having CIF values less than $40,000 (Rs.34,66,106)* need to charge 70% import duty. The used cars import duty in India is 125%.

*Please note that exchange rates fluctuate regularly, so it's advisable to check the current rate at the time of transaction.

Import Duty on Bikes Import in India

If you are importing a bike from overseas, then it is mandatory to pay Import Duty on bikes. It may vary as per the type of bike and its engine capacity.

In India, the import duty on bikes is around 116% of the CIF value of the bike.

Registration: 

Once the vehicle either car or bike, gets imported to India, it has to get registered in the nearest RTO. Import duty for cars or bikes doesn’t include the charges for registration and road tax.

 

Documentation for Importing Cars to India

The documents that are necessary to import a car are listed below-

• Invoice for vehicle
• Assessment report on car’s condition
• Import license
• Insurance policy
• Bank Draft
• GATT Declaration to import a car
• Purchase proof of vehicle if applicable

 

Vehicles That Cannot Import from International Destinations

The vehicles that are banned cannot be imported. Additionally, the vehicles consisting below specifications are barred from being imported as well.

• Four wheelers whose engine capacity ranges from 1,000cc to 2,500cc.
• Heavy duty bikes with an engine capacity ranging between 50cc to 500cc.
• Scooter whose engine capacity ranges between 250cc to 800cc.

 

Who Can Import Vehicles from Foreign Countries to India?

In India, the Directorate General of Foreign Trade (DGFT) handles vehicle import systems. It comes under the Ministry of Commerce and Industry.  So, they have highlighted some norms to decide who can import vehicles to India. Let’s review the key aspects.  

• Non-Resident Indians (NRI) who are out of India from at least 2 years before the import. They should buy a vehicle for at least 1 year.
• Family or members from the next generation of a person who passed away overseas and has left a vehicle there.
• Individuals with physical disability.
• Companies that exist in India but they have their business centers at foreign countries.
• Foreign business branch offices in India.
• Journalists having authorization certificates from the Ministry of Information and Broadcasting.

 

Car Import in India - FAQs

Can Left Hand Drive Vehicles be Imported in India?

Yes, Left Hand Drive Vehicles can be imported to India. But only for experimenting with the latest technologies. It benefits manufacturers.

Are Importing Cars from Foreign Countries Legal in India?

Yes, it is legal to import cars from foreign countries to India under specific conditions. The process of importing cars is complex from paying import duties to registering a vehicle.

How Import Duty is Calculated While Importing Cars in India?

Import duty on imported cars is calculated on the basis of cost, car insurance, and Freight (CIF) value. Total cost of importation is calculated with a CIF value plus GST and other taxes.

Can Second Hands Cars Be Imported in India?

Yes, second hand cars can be imported in India. But there are certain rules and regulations to follow. There are different rules for used cars import duty in India.

Can We Import Only Car Engines in India?

Yes, you can import only car engines in India. But there are some restrictions. You need to fulfil some criteria regarding engine capacity and engine size before importing.

Disclaimer:

The information provided above is for general informational purposes only. It is advisable to consult with an expert before making any decisions.