Govt to simplify import norms for high-end cars

So far, cars imported under EPCG scheme are subject to homologation and testing according to Indian requirements. While mentioning the fact that Indian Hotel Association (IHA) was forefront in representing against this condition and asking for exemption from homologation, DGFT said restricting the facility would not solve the problem. The note has also proposed that the modified procedure will be applicable to high-end cars of a CIF value of $50,000 or above and engine capacity of 1,800 CC.

Regarding the type approval certificate, DGFT has suggested to obtain that a list of recognised institutes can be obtained from Automotive Research Association of India (ARAI) whose certificates will be accepted under the modified procedure.

Department of Heavy Industry, which was opposing any modifications in the existing conditions for imported cars, has recently changed its stand and agreed to modifications and import of cars of 1,800 CC engine capacity and above on the basis of type approval certificate from the country of origin without going for testing again in India.

The new move will open avenues for automakers like BMW, Bentley, Volkswagen, Rolls Royce, Peugeot, who don’t have a manufacturing base in India but intend to sell cars in the Indian market. Most of these players are interested in bringing cars higher than 1,800 CC into India. According to market sources, many car dealers from major metros were pushing the case with the government to ease the import norms for cars. Though, they will be paying higher import duty on such cars, building a market would be easier for them now.