How to Import Car in India: Step-by-Step Guide 2025

Posted on: Jan 17, 2022 | 3 mins | Written by: HDFC ERGO Team

How to Import Car in India: Step-by-Step Guide 2025

When you are a car aficionado, you are likely to fall in love with a model that is amazing but not found in India. And if you are not constrained by a budget, you can bring such a car home too. However, importing cars to India can be a time-consuming and expensive process. This is why, you need to be financially sound and more to be able to import your dream car, given the regulatory hurdles and hoops along the way. And, of course, you will need a comprehensive car insurance policy for the same, strengthened further with add-ons, for holistic protection against unforeseen events.

Now, here’s what you must know when importing a car to India:

1. Conditions For Importing Cars To India

If you are planning to import a car, either a brand new car or a used car, here are some of the conditions that the car must meet.

◦ Conditions for a new car

▪ It must be manufactured or assembled in any other country, apart from India.

▪ The car must be brand new and should not be previously leased, sold, registered or rented.

▪ It must be a right-hand drive car, in which the lights primarily illuminate the left side of the road.

▪ The readings in the speedometer must be in kilometres and not miles.

▪ You can import via the naval docks in Mumbai, Chennai and Kolkata only.

◦ Conditions for a used car

▪ The car that you are planning to import must not have a manufacturing date older than 3 years.

▪ You can only import via naval docks in Mumbai, Chennai and Kolkata.

▪ The car must be fit for roads and certified for at least 5 years.

▪ The car must have been previously sold, leased, registered or rented.

▪ It must be a right-hand drive car and speedometer in kilometres.

2. Fundamental rules

• The car must be a right-hand drive. Left-hand drive cars were until recently banned from entering the country except for consulates, embassies, and other special cases. Now, you can import left-handed cars for testing and research purposes, given that left-hand drive is the norm in technologically advanced countries.

• The engine capacity of the car needs to be under 1000cc or over 2500cc, eliminating a large chunk of the market. Cars with engines under 1000cc will be low-cost, low-feature ones in their respective market, but become expensive if you consider import duty. On the other hand, cars with above 2500cc engines will be relatively high-end and expensive to begin with. If you add import duty to that, it will nearly double the cost.

• Newer cars must be imported only via the naval ports of Mumbai, Kolkata, and Chennai. Used cars, not older than three years from the date of manufacturing, can be imported via Mumbai only.

• The speedometer must display values in kilometres, not miles.

• The car can only be imported from the country of manufacturing. And it must be assembled or manufactured outside India.

3. Import duty

• For foreign cars with a cost, insurance and freight (CIF) value exceeding USD 40,000, the basic customs duty (BCD) is reduced from 125% to 70% per the 2025 Union Budget structure on import duties.

• A new Agriculture Infrastructure and Development Cess (AIDC) of 40% is introduced to effectively keep the overall import tariff unchanged.

4. Transfer of residence

Non-resident Indians (NRIs) are allowed to import one vehicle when moving back to India permanently. You must have lived in a foreign country for at least two years to undergo the ‘transfer of residence’ process. Also, this process should not have been initiated for at least three years prior to the current initiation. The vehicle cannot be sold for at least two years after the import.

5. Who can import a commercial vehicle?

• Foreign nationals (married to an Indian)/NRIs who have not resided in India for 2 years, and have registered the car for at least a year

• The legal heir of the deceased person, to whom the car has been bequeathed

• Physically challenged persons

• Business entities in India that also have foreign equity participation and vice versa

• Charitable, religious, or missionary trusts registered in India

• Any journalist accredited to the Press Information Bureau

6. Procedure to import the foreign car

If you are wondering about how to import a car in India, you must follow these steps for the same. The importer or dealer of the car should have a valid certificate of compliance, as per rule 126, of the central motor vehicle rules of 1989. The certificate must have been issued by any of the testing agencies.

The dealer or importer is responsible for all the guidelines under rules 122 and 138, that is usually assigned to a manufacturer. They are also responsible for issuing Form 22 under the CMVR, 1989.

Lastly, the importer or dealer should give an undertaking regarding the proof of compliance as per rule 126A Must be submitted within six months of the import. Failing to do so will prevent them from importing any more cars in the future.

7. Paperwork And Documentation

You can import a car directly from the manufacturer or through an agent, with the latter doing all the legwork, especially related to the paperwork. These are the documents you will need:

• Vehicle Invoice

• Car insurance policy

• GATT declaration

• Bank draft

• Bill of Lading

• Import License

• Purchase Order/Letter of Credit

• DEEC (Duty Exemption Entitlement Certificate) / DEPB (Duty Entitlement Passbook) / ECGC (Export Credit Guarantee Corporation of India) or any other specified document

Things to consider before importing a car into India

When you import car in India, there are certain factors that you need to keep in mind, which are as follows:

1. Eligibility and regulations

• The vehicle must be right-hand driven, as is the protocol in India.

• It must have headlights that are adapted for left-side driving and a speedometer representing the values in km/h.

• If you import car in India that is second-hand, it must be less than three years old and have a roadworthiness certificate.

• When you import car in India that is less than INR 34,82,400, you need to acquire a homologation from the Automotive Research Association of India, also known as ARAI.

2. Import duties and associated costs

• Import duties on cars significantly increase the overall cost of the vehicle. Taxes include but may not be limited to customs duty, GST, and other surcharges.

3. Registration and compliance

• Once you import car in India, you must register it with the Regional Transport Office (RTO) in your area.

• You will need to submit the necessary documents, including Form 20 (for registration), Form 21 (as a sales certificate), and the roadworthiness certificate.

• The imported car needs to be in compliance with India’s regulations on environmental practices and safety regulations. It must also adhere to emission protocols and limitations on car modifications.

4. Car insurance requirements

• Third party car insurance and personal accident cover is mandatory in India under the Motor Vehicles Act of 1988. You can purchase standalone own damage and third party car insurance.

• You can also opt for comprehensive car insurance to protect the value of the imported car longer.

These factors largely impact the process when you import car in India. You need a clear picture of the financial obligations, regulations, and car insurance requirements for a hassle-free import process.

Conclusion

There are plenty of amazing cars available internationally, which cannot be bought in India. If you are wondering how to buy foreign cars in India, the above steps will help you. Importing these cars can be a sensible option if you strongly want to own them. The process can seem a bit complicated. However, if you follow all the steps and have all the documents in place, you should be able to get through it without any hassles. Once imported, you will need to adhere to Indian rules such as mandatory third party car insurance.

FAQs

1. Who can import a left-hand drive car in India?

In India, only car manufacturers are permitted to import left-hand drive vehicles, strictly for testing and research purposes. These cars cannot be sold.

2. Can NRIs import cars?

Yes, NRIs who have not lived in India for at least 2 years can import their cars to India.

3. Can I import vintage cars?

Yes, you can import vintage cars to India, as long as they are manufactured on or after the 1st of January, 1950. You cannot import cars that were manufactured prior to this date.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Road Tax in Gujarat: Rates, Calculation, and Online Payment Guide

Want to get a foreign car? Know the rules of import

Best Sedan Cars in India: Top Picks for Every Budget

Top 9/10-Seater Cars in India: Price and Key Specs

Best Hybrid Cars in India: Top Choices to Consider