Classic and Vintage Cars Now Easy To Import: 10 Things You Should Know

Enthusiasts can now import a 1974 Lamborghini Countach, or any other classic cars launched before it!

For vintage car lovers in India, the government’s updated import policies have opened up exciting opportunities. Whether you’re a collector or an enthusiast, these changes mean you can now import a broader range of classic and vintage cars. Here’s everything you need to know to navigate the import process successfully.

1. What Cars Are Now Eligible for Import?

The age requirement for importing classic cars has been significantly relaxed. While previously, only vehicles manufactured before 1950 were eligible, the new policy allows the import of cars that are at least 50 years old. This policy operates on a rolling basis, meaning cars from 1975 will become eligible in 2025. Importantly, the vehicle’s eligibility is determined by its first registration date, making the process easier and clearer for importers.

2. What’s the Simplified Import Process Like?

One of the most beneficial changes for buyers is the removal of import license requirements. If your car meets the age criteria, it qualifies for “free import” status. However, the catch is that it applies only to personal use imports. If you’re looking to import a vintage car for resale or commercial purposes, this exemption doesn’t apply, and additional steps will be required.

3. What Legal Frameworks Should I Be Aware Of?

Even though the import restrictions have been relaxed, it’s crucial to understand that your imported car must comply with Indian regulations. These include the Motor Vehicles Act, 1988, and Chapter 3A of the Central Motor Vehicles Rules, 1989. Familiarizing yourself with these rules is essential to ensure your vehicle meets the necessary compliance standards before you import.

4. Can I Resell the Imported Vintage Car?

A key point for potential importers is the strict resale regulations. Imported vintage cars cannot be resold within the Indian domestic market under any circumstances. These imports are strictly for personal use, and violating this rule could lead to stricter future regulations. So, if you’re considering importing for investment purposes, be aware that resale isn’t an option.

5. How Much Will It Cost to Import?

Importing a vintage car isn’t cheap. You should be prepared for a financial outlay of around 250% of the vehicle’s invoice value. This includes customs duties, GST, and registration fees. It’s vital to factor in all these costs to make sure your budget can cover the full import process, from purchase to registration.

6. How is the Vehicle Valued for Taxation?

The taxes imposed on imported vehicles are based on the invoice value of the car, although there have been talks of introducing a flat-duty structure to reduce the risk of under-invoicing. Ensure you understand the valuation process before purchasing so you can estimate the total cost accurately and avoid surprises at customs.

7. What Are the Registration and Paperwork Requirements?

Once your car is imported, it must undergo registration in India. The format is specific: **”XX VA YY **” where “XX” is the state code, “VA” signifies a vintage vehicle, and the remaining characters form a unique identifier. Your car’s registration will be valid for 10 years, with a re-registration fee of ₹5,000 after the initial period. New registration costs ₹20,000, so be sure to account for these fees as part of your import budget.

8. How Should I Insure My Vintage Car?

Insuring a vintage car requires special attention. Key aspects include:

• Insured Declared Value (IDV) is jointly determined between you and the insurer.

• Premiums may be higher due to the car’s age, rarity, and specialized maintenance needs.

• Spare parts can be hard to find, and this could influence the cost of coverage.

• Restrictions on how you use the car (e.g., for personal enjoyment versus driving it regularly) could also impact premiums, so discuss your intended use with the insurer.

9. Can I Drive My Imported Vintage Car on Indian Roads?

Mostly, the answer is no. The reason is, cars older than 45 years fall into the Antique cars category in India. And antique cars can only be driven for exhibitions, shows and maintenance / mechanical purposes. These cars are exempted from the 15-year petrol and 10-year diesel car bans of the Delhi NCR region – but you cannot drive them around.

10. What Maintenance and Spare Parts Issues Should I Expect?

Maintaining a vintage car in India can be challenging. Spare parts may be difficult to source, especially if your vehicle is rare or has unique components. This can lead to higher maintenance costs and the need for customized repairs. Finding skilled mechanics familiar with vintage cars is also essential. Additionally, you may need to import parts from abroad, adding to the complexity and cost of ownership.

The relaxed import regulations represent a monumental shift for India’s vintage car community. While the process has been simplified, you’ll still need to plan carefully, budget for significant costs, and understand all regulatory requirements. If you’re ready to dive in, the dream of importing your ideal classic car is now within reach.

Just remember: importing a vintage car requires diligence, a solid understanding of the process, and an eye on long-term costs and legalities. But with the right preparation, this can be a rewarding experience that brings the charm of classic cars straight into your garage.