Is Importing a Car to India Cheaper? Full Breakdown of Costs, Taxes & Regulations
Thinking of importing a car to India? Discover the real costs, import taxes, rules, and potential savings with our deep dive to see if it’s truly cheaper.
View MoreWant to drive a foreign car on Indian roads? It’s not as hard as you think once you know the rules. Below is a practical roadmap that walks you through everything from paperwork to paying taxes, so you can avoid surprise costs and delays.
India charges several fees on imported vehicles. The biggest chunk is the Basic Customs Duty (BCD), which is 100% of the car’s FOB (Free on Board) value for new cars and 60% for used ones. On top of that you’ll pay Integrated GST (IGST) at 18%, Social Welfare Surcharge (10% of the BCD), and a cess that depends on engine size. For example, a 2.0 L engine adds a 30% cess, while a 3.0 L engine adds 40%.
To keep the total cost under control, calculate the landed cost before you ship. Use this simple formula: Landed Cost = FOB price + freight + insurance + BCD + IGST + Surcharge + cess. Many import‑export agents provide calculators that do the math for you.
The paperwork may feel overwhelming, but you only need a handful of documents:
Once the car clears customs, you have to register it with the Regional Transport Office (RTO) where you live. The RTO will ask for the same documents plus a fitness certificate if the car is older than three years. Expect a registration fee based on the car’s engine capacity and age.
It helps to hire a clearing agent who knows the local bureaucracy. They can submit the forms online through the ICEGATE portal, track the clearance status, and arrange for the RTO inspection.
There are two main ways to ship a car to India: container shipping and roll‑on/roll‑off (RoRo). Container shipping protects the vehicle from weather and damage but costs about 30‑40% more. RoRo is cheaper, especially for larger cars, but you can’t ship anything extra inside the car.
Typical freight rates from Europe or the US range from $2,500 to $4,500, depending on size and route. Add insurance (usually 1‑2% of the car’s value) to cover any loss during transit. Plan for a transit time of 25‑35 days for container shipping and 20‑30 days for RoRo.
When you receive the car at the Indian port, you’ll need to clear it within 30 days, otherwise storage fees start adding up. Have your clearing agent ready to handle the customs paperwork as soon as the vessel arrives.
1. Choose a Used Car Wisely: Used cars attract a lower BCD (60% vs. 100%). Still, make sure the vehicle meets Indian emission norms, otherwise you’ll face heavy penalties.
2. Eye the Engine Size: Smaller engines incur lower cess. If you can live with a 1.5 L engine, you could save tens of thousands of rupees.
3. Use a Reputable Agent: A good clearing agent can reduce hidden costs and speed up clearance. Look for reviews and ask for a detailed fee breakdown.
4. Verify Port Restrictions: Some Indian ports have limits on vehicle dimensions. Confirm with the port authority before you book the shipment.
5. Plan for Registration Early: The RTO inspection can take a few weeks. Schedule it as soon as the car clears customs to avoid a long idle period.
Following these steps makes importing a car to India a manageable project rather than a mystery. Do the math, get the right paperwork, pick a shipping method that fits your budget, and let a trusted agent handle the red tape. Soon enough you’ll be behind the wheel of your dream ride on Indian roads.
Thinking of importing a car to India? Discover the real costs, import taxes, rules, and potential savings with our deep dive to see if it’s truly cheaper.
View More