Car Import Guidelines in India

Indian car market has grown almost ten fold in the last decade. An unprecedented number of new cars were sold in Indian car market in 2008. At the same time more than 1,000 cars were imported from outside the country. There is a great demand for second hands cars from overseas which fuel the lifestyle of the rich and famous.

However, the import of luxury cars is subject to guidelines of the government of India. The Exim policy of 2001 lifted the quantitative restriction on import of second hand cars in India.

Meaning of an imported vehicles:

A vehicle that has not been manufactured or assembled in India is safely classified as imported cars. However, cars that has not been sold, leased or loaned and vehicles that have not been registered in any country prior to importation are also classified as imported cars.

Conditions to import cars:

New Car

The new vehicles are subject to follow certain rules as specified by the Indian Motor Vehicles Act 1988. The imported cars too are required to adhere to the same rules. As per the conditions laid down by the Act, new cars should include

A speedometer indicating speed in Km/h, have a right hand steering and controls, have photometry of headlamps to suit keep left traffic and should be imported form the country of manufacture.

In addition to these the new imported vehicles shall to allowed to be imported through Customs port at Nhava Sheva (Mumbai), Calcutta, and Chennai.

Second Hand Car

For a second hand or used cars being imported into the country, it should not have been sold, leased or used in India prior to being imported to India. The second hand car should have been registered for use in any foreign country.

The second hand or pre-owned car being imported to India is also subject to certain conditions as laid down by the Motor Vehicles Act, 1988.

The conditions are- the second hand vehicle shall not be older than three years from the date of manufacturer, it should have a right hand steering and controls, have a speedometer indicating speed in Km/h and also headlamps suited to Indian conditions. The imports of these cars are also through the same ports specified for new cars.

It is specified that the second hand car imported into India should have a minimum roadworthiness for a period of 5 years from the date of being brought into the country. Hence, it is required that the importer shall submit a declaration indicating the period of the roadworthiness. It should be supported by a certificate issued by any of the testing agencies which are notified by the Central Government.

After being brought into the country, the second hand car should be submitted for testing to vehicle research and development establishment, Ahmednagar, of the ministry of Defence or the Automotive Research Association of India, Pune or Central Farm and Machinery Training and Testing Institute, Pune or the Central Farm and Machinery Training and testing Institute Budni Madhya Pradesh or any other agency as specified by the Central Government.