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Government to ease import of high-end cars

June 07, 2018, 02:27 PM IST by Omkar Thakur
Government to ease import of high-end cars

- Cars priced at more than $40,000 (approx. Rs 27 lakhs) can be imported without homologation

- Import duty structure will continue to be the same

- Number of imports limited up to 2500 units annually

- Cars will have to be right-hand drive

The government of India is planning to do away with mandatory homologation clause for high-end car imports, thus paving way for niche luxury car makers across the world. The draft policy says that cars above $40,000 (approx. Rs 27 lakhs) in value will be allowed if certified by internationally-accepted test agencies.

The customs and duties structure will remain the same and with the new draft policy in, any hopes of having lower import duties have been quashed for the next five years at least. While the cars will not be cheaper, you can expect more cars from exotic car makers like Pagani or Koenigsegg along with the Ferraris, Lamborghinis and Aston Martins. Also, this new policy will aid the existing luxury players like Mercedes-Benz, Audi, BMW, Jaguar-Land Rover, Volvo and Lexus to bring in their exclusive cars for interested buyers.

However, the cars must have right-hand drive steering setup and the numbers are limited to 2,500 units per annum. This move might also open up the luxury-van market in India. Toyota has already showcased the Alphard at the Auto Expo and the Mercedes can always bring in the Viano if there is enough demand.


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