Car Import Rules India: Your 2025 Quick Guide

Thinking about driving a foreign car on Indian roads? It’s not as knotty as it sounds, but you do need to follow a set of clear rules. Below you’ll find the most important duties, paperwork, and limits that apply in 2025. Follow the steps and you’ll avoid nasty surprises at customs.

Key Duties and Taxes

The biggest cost when you import a vehicle is the duty. India levies a basic customs duty of 10% on the CIF (cost, insurance, freight) value of the car. On top of that, there’s an Integrated Goods and Services Tax (IGST) that can range from 18% to 28% depending on the engine size and vehicle type. Luxury cars with engines above 2000 cc often face the higher IGST rate.

Don’t forget the Social Welfare Surcharge (10% of the basic duty) and the Compensation Cess (if the car is a luxury model, an extra 2%‑5%). Adding all these up, you can expect the total landed cost to be roughly 30%‑45% higher than the original price.

If you’re importing a used car that’s less than three years old, you still pay the same duty structure. However, cars older than three years are generally not allowed for personal import, except for classic or collector’s vehicles that have special clearance.

Step‑by‑Step Import Process

1. Check eligibility. Only non‑resident Indians (NRIs), foreign tourists, and certain businesses can import a car for personal use. You must also have a valid Indian address where the car will be registered.

2. Get a No Objection Certificate (NOC). Before you ship, apply for an NOC from the Regional Transport Office (RTO) in the state where you’ll register the vehicle. This proves the authorities know you’re bringing a car in.

3. Choose a shipping method. Most people use container shipping for safety, but roll‑on/roll‑off (RoRo) is cheaper if you’re okay with a shared space. Make sure the freight forwarder provides a full Bill of Lading.

4. Prepare documents. You’ll need:

• Commercial invoice showing the car’s value
• Bill of Lading
• Passport copy and visa proof
• Form 19 (customs declaration)
• Insurance certificate
• NOC from the RTO

Having everything ready speeds up clearance at the port.

5. Pay duties and clear customs. Once the car arrives, the customs officer will assess the duty based on the documents and the car’s specifications. Pay the amount online or at the customs desk, then collect the release order.

6. Register the vehicle. Take the release order, NOC, and all original documents to the local RTO. You’ll get a registration certificate (RC) and a number plate. Remember to buy a road tax receipt – it’s part of the registration fees.

7. Get a fitness certificate. For cars older than three years, a fitness test at an authorized garage is mandatory. The test checks emissions, brakes, and overall roadworthiness.

Following these steps keeps the process smooth. Skipping any paperwork can lead to fines or the car being held at the port for weeks.

One quick tip: before you decide to import, run a cost calculator that adds the car’s price, shipping, insurance, duties, and registration fees. Many online tools let you plug in the engine size and CIF value to see the final cost. If the total is more than 30% higher than a comparable Indian‑made model, you might want to rethink.

Importing a car into India isn’t rocket science, just a matter of respecting the rules and budgeting for the extra charges. Armed with this guide, you can enjoy your dream vehicle on Indian roads without nasty bureaucratic hiccups.