Car import tax in India is among the highest in the world, making imported vehicles significantly more expensive than their overseas prices. Fully Built Unit (CBU) imports from non-ASEAN countries attract 100% customs duty — equal to the vehicle's value before import. On top of that, GST of 28% is applied to the landed cost. The total tax burden on an imported car can exceed 150% of its overseas price.
For context, a luxury car priced at ₹50 lakh in Germany would cost approximately ₹1.5 crore+ on-road in India after customs duty, GST, and dealer margins. This is why very few international brands sell imported cars in India — most instead manufacture locally to avoid the punitive import duty.
Customs Duty Rates for Cars
CBU from non-ASEAN countries: 100% customs duty. CBU from ASEAN (if qualifying): 30% customs duty. SKD/CKD kits (semi-knocked down for domestic assembly): 15-30% duty. GST is added on top of the landed cost including customs duty.
What is the customs duty on importing a car to India?
Fully Built Unit (CBU) cars from non-ASEAN countries attract 100% customs duty — equal to the vehicle's assessed value. Cars from ASEAN countries that qualify under the FTA attract 30% customs duty. GST of 28% is applied on top of the landed cost including customs duty.
Why are imported cars so expensive in India?
Imported cars are expensive because of high customs duty (100% for non-ASEAN CBU), GST (28%), and NHAI cess. For example, a car worth ₹50 lakh overseas costs approximately ₹1.5 crore+ on-road in India after all import taxes.
Can I import a Tesla to India?
Tesla cars are not officially sold in India. Importing one as a personal vehicle attracts 100% customs duty plus 28% GST — making the on-road price approximately 3x the overseas price. At current prices, a Tesla Model 3 would cost ₹70+ lakh on-road in India.
Is there a way to legally reduce import tax on cars?
Setting up a manufacturing plant in India (like Tesla is reportedly considering) would qualify cars for domestic production rates. Importing as diplomatic cargo or as a heritage/antique vehicle (over 25 years old) has different — and potentially lower — duty rates.
What is the GST on imported cars?
Imported CBU cars attract 28% GST on the landed cost (after customs duty). For a car with ₹50 lakh customs-paid value, GST = ₹14 lakh. Total import taxes can exceed 150% of the original overseas price.
Official Resources: Parivahan Portal | India GST Portal | NHAI
