The government is all set to change the import norms for high end luxury cars, bikes and Evs by removing restrictions on price and engine capabilities
India is one of the countries with extremely high import duties as the government want companies to manufacturer their models in India to improve economy of the country. But manufacturers must get there investment back from sales then only it will be profitable for them to continue investing in the country.
Even though India is a big market, high end bikes or cars are still not widely accepted because of their pricing as people were not able to afford them so manufacturing these models is not viable which is why manufacturers tend to import them. But the companies will have to go through lots of procedure before introducing them in India.
The government is all set to change the import norms for high end luxury cars, bikes and electric vehicles in which by removing restrictions on price and engine capabilities along with mandatory local testing. From now on government will allow import of vehicles which are certified by international testing agencies in Europe or Singapore or other countries.
According to current norms by Directorate General of Foreign Testing (DGFT) allow homologation free import of four wheelers valued above $40,000 and bikes above 800 cc. These norms will not be applicable now and manufacturer or its agencies can import 2,500 units annually without any test-clearance by Indian agencies.
The road transport ministry has already issued a draft regarding this and the only thing that mandatory is that vehicles must meet certain Indian conditions as they must have right hand steering control. The new norm will also help registration of imported vehicles across states without any problem as in some states it’s a problem right now.
The ministry liberalised the norms to increase global models in Indian market as manufacturers will be able to launch them quickly but the government hasn’t changed import tax structure. We can expect luxury manufacturers like BMW, Mercedes, Audi, Porsche, Ferrari and others to bring more expensive models to India soon along with bike manufacturers also. The luxury segment is expected to see a lot of launches in coming months.