Short summary: Importing a car into India is entirely possible but often costly and paperwork-heavy. You’ll need to decide whether the import is permanent (CBU/new/used), temporary (tourist/diplomatic/exhibition), or as a Transfer of Residence (TR). Major compliance steps include customs clearance, payment of import duties & IGST, homologation (safety/air pollution conformity), and registration with the local RTO. Several specific restrictions apply to used cars, ports of entry, and documentation.

1) Types of imports — which route applies to you?

• Permanent import (CBU — Completely Built Unit)
  Importing a car permanently into India for personal or commercial ownership. Requires full customs clearance, homologation and RTO registration.

• Used car import
  Allowed with strict conditions (age limits, right-hand drive, roadworthiness certs). Often allowed only via specified ports and may require pre-shipment testing.

• Temporary import (tourists, exhibitions, Carnet/ATA)
  Vehicles may be temporarily admitted duty-free under a Carnet/CPD for short stays (subject to stamping and re-export). Useful for short trips, events, shoots.

• Transfer of Residence (TR)
  NRIs or Indians returning permanently can bring household goods (including vehicles) under TR rules — subject to residence qualification, documentation and sometimes NOCs. TR can offer concessionary treatment but still requires approvals.

2) Who can import a car? (eligibility highlights)

• Any Indian resident or authorised importer with an IEC / Importer Exporter Code (for commercial imports) can import cars. For individuals, rules depend on import category (TR, personal import, tourist, diplomatic).

• Used cars: typically must be ≤ 3 years old from manufacture date at import and meet right-hand drive and roadworthiness requirements; import of used cars is frequently restricted to specific ports (Mumbai historically prominent). Always check latest DGFT/Central Government policy.

3) Key documents you will need

Typical list (may vary by case):

• Commercial invoice / purchase invoice showing value, seller, VIN/Chassis no.

• Bill of Lading / Airway Bill.

• Packing list.

• Bill of Entry (filed at customs; often through a CHA).

• Importer’s IEC (for commercial imports).

• Passport, visa (for tourists), and proof of residence (for TR).

• Carnet de Passages (for temporary import under Carnet).

• Homologation certificate / ARAI or other notified testing agency certificates (for permanent imports / used cars).

• Pre-shipment roadworthiness / compliance certificate for used cars (if required).

4) Compliance & homologation (safety, emissions)

• Homologation / Type Approval: India requires vehicles to comply with Indian Motor Vehicle rules and emission norms. ARAI is a primary notified testing/approval agency for certification and homologation. Imported cars (new or used) will typically need testing/certificates to prove compliance before registration.

• Modifications: If the car was built for left-hand traffic (headlight photometry, steering), it must meet "keep left" requirements (headlamp aim, speedometer in km/h, etc.) — many used imported cars will need modifications or certification.

5) Import duties, taxes & how they are calculated (big cost drivers)

Import cost components (commonly charged in sequence):

1. CIF value — Cost, Insurance & Freight (value on which duties are assessed).

2. Basic Customs Duty (BCD) — percentage of CIF (varies by category). Recent policy changes have shifted peak BCD levels and introduced new cesses for some categories — see latest budget & DGFT notices.

3. AIDC / Special Cesses — e.g., Agriculture Infrastructure & Development Cess (AIDC) applied to several items including certain vehicles (introduced/updated in recent years).

4. Social Welfare Surcharge (SWS) — applied on BCD.

5. Integrated GST (IGST) — applied on (CIF + BCD + cess). Cars are usually taxed at the higher end of IGST (passenger vehicles often attract IGST in the 18–28% band depending on category).

6. Compensation cess / Additional cess — some cars (luxury, large-engine) attract extra cess (varies by engine size/value).

Practical note: these duties add up multiplicatively — BCD raises the base for IGST calculation, so total effective tax can be extremely high (often doubling or even more the landed cost for luxury cars under older tariffs; recent policy changes reduced some peak BCDs but introduced AIDC on certain items). Reuters and recent government notices in 2025 changed peak numbers (e.g., basic customs duty cuts for some categories to 70% but with AIDC 40% introduced for luxury cars in some notifications) — always check the latest Finance / Customs notifications.

Example Duty Calculation (Illustrative)

⚠️ Takeaway: Duties can nearly triple the original car price.

6) Ports, shipping & customs clearance

• Common ports: Mumbai (Nhava Sheva / JNPT), Chennai, Kolkata and some others handle car imports. Historically some used car imports were permitted only via Mumbai. Customs clearance will require filing a Bill of Entry and examination. Use a Customs House Agent (CHA) for filings and communications.

• Steps at port: Arrival → IGM (Import General Manifest) → Examination by customs (physical/ document) → Bill of Entry / assessment → Duty payment → Out of Charge / delivery order → transport to RTO for compliance/registration.

7) Registration with RTO & road tax (after customs clearance)

Once customs formalities are complete and you have the customs clearance certificate and homologation/compliance documents:

1. Get a temporary registration (if applicable) from RTO to move the vehicle locally.

2. Obtain permanent registration — submit customs clearance papers, invoice, insurance, PUC certificate, homologation, and identity/address proofs. Some states impose higher road tax on imported cars — city/state rules differ and can add a significant amount (some metros charge a one-time road tax that is a percentage of vehicle value).

Important: Some states may refuse to register certain imported vehicles (especially older used cars) or impose additional inspections — check local RTO rules in advance.

8) Temporary import & Carnet — short stays without paying full duties

• Carnet de Passages (ATA Carnet/CPD) allows duty-free temporary import of vehicles for tourism/events (generally up to 6–12 months depending on carnet rules and extensions). The Carnet must be stamped on entry and exit; failure to re-export will cause customs to claim duties/penalties.

• Tourists: If you visit India with your foreign car temporarily, the carnet route or temporary admission with deposit is typical. Not a method for permanent import.

9) Transfer of Residence (TR) rules — bringing your car back

• If you are returning to India after a continuous period abroad (commonly two years or more — check exact rule & proof requirements), you may import household goods including one vehicle under TR provisions — subject to NOCs and DGFT procedures. Vehicles imported under TR often get concessional treatment if conditions are satisfied (you may still require homologation and RTO registration). Check DGFT notifications and Customs circulars for exact eligibility and validity periods.

10) How to reduce cost / practical tips

• Consider CKD / SKD or local authorised distributor: importing Completely Knocked Down (CKD) kits or buying through an authorised distributor is usually cheaper (lower duty, easier homologation). Trade agreements (FTAs) can reduce tariffs for certain origins/brands — keep an eye on trade deals.

• Transfer of Residence if eligible can be more economical than open commercial import.

• Smaller engine / smaller value cars attract lower cess & duty bands; choosing lower-displacement models reduces compensation cess.

• Get a customs broker / CHA to estimate landed cost before purchase. They can compute exact duty components and advise on port/clearance options.

• Check local RTO whether they will register the model (some states have additional conditions or refuse older imported cars).

11) Timeline — how long does import take?

• Shipping transit depends on origin (weeks).

• Customs clearance (with correct docs & no issues) can be a few days to 2 weeks; homologation/testing can add several weeks. Overall expect multiple weeks to a few months for permanent imports. (Exact timelines depend on pre-shipment compliance, testing slots at ARAI, port congestion.)

12) Common pitfalls & warnings

• Huge landed cost — taxes can exceed the car value by a large margin. Always run a complete landed-cost calculation.

• Unclear paperwork — missing import license/IEC, incomplete invoices or non-compliant certificates delay clearance and may attract penalties.

• Homologation failures — non-compliant vehicles can be refused registration.

• State road tax surprises — local road tax can be large and variable.

• Used car age & ports — used cars older than allowed or shipped via non-approved ports can be rejected.

13) Frequently Asked Questions (short answers)

Q: Can any used car be imported into India?
A: No. Used cars are subject to age limits (typically ≤ 3 years from manufacture at time of import), right-hand drive requirement, roadworthiness certificates and usually allowed only via specified ports.

Q: Is import cheaper than buying locally?
A: Usually no for mainstream buyers — duties and cesses often make imported cars much more expensive. Exceptions exist for very specific cases (TR, resale market arbitrage, CKD assembly, or special trade concessions).

Q: Can tourists drive their foreign car in India for months?
A: Yes, often under Carnet / temporary admission rules — but specific expiry/extension rules apply and carnet stamps on entry/exit are essential.

Q: Who issues homologation / compliance certificates?
A: Agencies notified by the Central Government such as ARAI provide type approval and homologation services. Imported vehicles may need ARAI certification or equivalent as notified.

14) Practical step-by-step checklist (for personal permanent import)

1. Decide import route (CBU/permanent, TR, temporary).

2. Obtain IEC (if commercial) or prepare TR / passport proof.

3. Confirm car eligibility (age, drive side, emission level).

4. Get pre-shipment roadworthiness / testing certificate (if required).

5. Arrange shipping & insurance (CIF incoterms recommended).

6. File Bill of Entry via CHA at port of arrival.

7. Pay customs duties, cesses, IGST.

8. Obtain customs clearance / delivery order.

9. Complete homologation / ARAI formalities.

10. Register vehicle at local RTO (temporary/permanent), pay road tax.

15) Where to check authoritative sources (links you should open before importing)

(Top authoritative sources to verify current rules & rates):

• Directorate General of Foreign Trade (DGFT) — for notifications on import licensing, transfer of residence, policy changes (DGFT site hosts notifications).

• Central Board of Indirect Taxes & Customs (CBIC / Customs) — for customs duty schedules, notifications and tariff changes.

• Automotive Research Association of India (ARAI) — for homologation & testing requirements.

• Recent Finance/Budget notifications & Reuters or other reputable business press — for changes to BCD / AIDC / tariffs.

16) Final words — is it worth it?

If you're importing a unique collector’s car, or your situation fits Transfer of Residence / diplomatic / temporary needs, the process can be justified. For most buyers, high import duties, cesses and local registration costs make importing a typical new or luxury car significantly more expensive than buying via an authorised distributor or buying locally. Always run a full landed cost estimate, consult a customs broker/CHA and verify the latest DGFT/CBIC notifications before committing.