Indians Can Now Import Classic Cars Legally: Here’s How!
India’s tax and tariff system is infamous for its high-set slabs. The government levies huge sums in duty on automotive imports. We also have strict laws pertaining to the import of cars and SUVs from foreign countries. Previously you couldn’t import pre-owned cars legally. It was thus almost impossible to get drool-worthy global classics to the Indian soil legally, even if you had deep pockets. Now, the government of India has relaxed its vintage car import policy. While new cars continue to be taxed close to 100%, importing pre-owned vehicles has now been made legal.
Vehicles made and registered before 1975 will qualify for the amended policy this year. This doesn’t mean that you can import these free of cost. The relaxation just means that you don’t need an import license anymore, to get these to the Indian soil. And users will be charged. They’ll have to pay duties and fees (customs duty, GST and registration fee) which could amount to about 250% of the car’s invoice (traded) value!
As mentioned above, the amended policy applies only to vehicles that are at least 50 years old (from the first registration after first sale). Since this is a free import, the actual user doesn’t require an import license to get the vehicle shipped in. The Director General of Foreign Trade, Government of India, Mr Viveck Goenka has now made the amendment public, and the same is attracting widespread appreciation from classic car enthusiasts.
The amended policy will remain on a rolling year basis. This means that all vehicles made and registered abroad up to the year 1975 can be imported for free this year. Yes, 2025 could be the best time to get a 1969 Mustang or 1974 Lamborghini Countach imported, if you can afford to.
The amendment does come with a handful of caveats though. It allows just actual users of the cars to import and also prohibits any further sale of the same in the domestic market. This means that if you were to import a classic, it would have to stay with your family for the rest of its time in India. You cannot sell it off! (Atleast for now!)
This also means that no dealer or broker would be able to take unfair advantage of the updated policy to import and sell classic cars, and make a fortune out of it. If the user wants to sell the import in future, stricter conditions including a “no sale for 5 years” policy from the date of import, would apply to them. The details of these will surface later.
Like every other car on our roads, these imports too will have to comply with the Motor Vehicles Act, 1988, and the Central Motor Vehicles Rules, 1989.
The amended policy stands close to those employed by countries like Canada and USA. Most of them, however, have smaller figures in ‘permissible age’. Canada’s import policy, for example, is applicable to vehicles that are at least 15 years old. USA’s rule applies to vehicles that are at least 25 years old. That said, we’d get to see more classic BMWs, Mercedes Benzs, Jaguars, American muscles and Porsches on our roads, in the coming years. The car culture here, is set to boom…
It is finally green light for the inflow of timeless classic cars. The new policy amendment is expected to create more job opportunities and possibly a micro-economy around restoration and classic car maintenance.