Automotive imports into India are among the most duty-protected categories. Fully Built Units (FBUs) face BCD of 60–125%, while auto parts face 7.5–15%. For most importers, the economics only work through direct OEM relationships, bonded warehousing for parts, or homologation for niche vehicle types.
Vehicle Import Duty Structure
| Category | BCD | IGST | Effective Rate on CIF |
|---|---|---|---|
| Passenger cars (engine <1600cc) | 60% | 28%+cess | ~117% |
| Passenger cars (engine >1600cc) | 100% | 28%+cess | ~165% |
| SUVs / luxury cars | 100–125% | 28%+cess | ~175% |
| Electric vehicles (CBU) | 15% (under EV policy 2024) | 5% | ~21% |
| Two-wheelers | 50% | 28% | ~95% |
| Auto parts (general) | 7.5–15% | 18% | ~30–40% |
| Tyres | 15% | 18% | ~37% |
Homologation for Imported Vehicles
All vehicles sold in India must be type-approved by ARAI (Automotive Research Association of India) or ICAT. The import process requires:
- Vehicle must meet Bharat Stage 6 (BS6) emission norms
- Right-hand drive only (exceptions for diplomatic imports)
- Safety standards compliance (AIS/CMVR)
- For small-volume imports (under 2,500 units/year): self-certification allowed with DGFT permission
Auto Parts Import — HS Codes and Duty
| Part | HS Code | BCD |
|---|---|---|
| Engine parts | 8409 | 7.5% |
| Transmission parts | 8708.40 | 7.5% |
| Brake systems | 8708.30 | 7.5% |
| Electronic control units | 8537.10 | 10% |
| Seat belts | 8708.21 | 15% |
| Windshields / auto glass | 7007 | 15% |
EV Import Policy 2024 Update
India's EV import policy (2024) allows electric passenger vehicles at 15% BCD (down from 100%) subject to conditions:
- Minimum investment of USD 800 million in Indian EV manufacturing
- Minimum domestic value addition of 25% in 3 years, rising to 50% in 5 years
- Maximum imports: 8,000 EVs per year per company under the scheme
- Not yet confirmed if Tesla or other OEMs have received approvals — check DPIIT notifications
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