f you’ve ever dreamt of driving a Lamborghini, Ferrari or a Porsche on Indian roads, here’s the reality check: that dream comes at a jaw-dropping cost. Buying a luxury car abroad is one thing; bringing it home to India is another game altogether.
India’s automotive imports are heavily protected by high tariffs, and the moment your car hits an Indian port, a chain of taxes and charges kicks in, often doubling or tripling the car’s price. That’s why a Lamborghini Huracán that costs ₹3 crore overseas can end up costing ₹7-8 crore on Indian roads.
And yet, cars imported to India in the financial year 2023-2024 amounted to around $700 million. If you’re planning to import your dream machine or simply curious why these cars cost so much here, stick around.
Table of Contents
Why Are Imported Cars So Expensive in India?
India is one of the countries with the highest import taxes on luxury cars. The government does this to protect local manufacturers and discourage imports. While this makes sense for the economy, it’s a heartbreaker for petrolheads like us. But before we jump into the tax breakdown, you need to understand a few terms that define how your car is classified. Because the tax changes based on this classification.
Key Terms You Must Know
| Term | What It Means | Impact on Price |
|---|---|---|
CBU (Completely Built Unit) | A fully built car is shipped as it is from abroad. | Highest tax slab |
CKD (Completely Knocked Down) | The car comes in parts and is assembled in India. | Much lower tax than CBU. |
SKD (Semi Knocked Down) | Partially assembled abroad, finished here. | Higher than CKD, but less than CBU. |
CIF Value | Cost + Insurance + Freight to the Indian port. | All taxes are calculated on this value. |
IGST | Integrated GST is charged after customs duty on imported cars(currently 28%). | Adds a big chunk to the final cost. |
Compensation Cess | Extra tax for luxury cars (up to 22%). | A bigger engine means a higher cost. |
AIDC | 40% on CIF |
The starting point for calculation is something called the CIF value, which includes:
- Cost of the car
- Insurance
- Freight (shipping charges to India)
All duties are calculated on this CIF amount. From there, the layers of taxes begin.
For most supercars and luxury imports, the category is CBU (Completely Built Unit). These attract the highest tax slabs, especially if:
- Engine size is above 3,000cc (petrol) or 2,500cc (diesel)
- CIF value is above $40,000 (around ₹33 lakh) — which every exotic qualifies for.
Here’s how the duties stack up:
| Tax/Charge | Rate | Applied On |
|---|---|---|
Basic Customs Duty (BCD) | 70% (reduced from 125%) | CIF Value |
Social Welfare Surcharge | Removed since 2025, replaced by Agriculture Infrastructure and Development Cess (AIDC) | N/A |
Agriculture Infrastructure and Development Cess (AIDC) | 40% | CIF Value |
IGST (Integrated GST) | 28% (for petrol/diesel luxury vehicles); 5% for electric vehicles | CIF + BCD + AIDC |
Compensation Cess | 15% to 22% based on engine size, length and type | CIF + BCD + AIDC |
Let’s assume your dream car costs ₹1 crore abroad. Here’s what happens when you bring it to India:
- CIF Value (Cost + Insurance + Freight): ₹1,00,00,000
- Basic Customs Duty (BCD): 70% of CIF ₹1,00,00,000 × 70% = ₹70,00,000
- Agriculture Infrastructure and Development Cess (AIDC): 40% of CIF (replaces the old 10% Social Welfare Surcharge from 2025) ₹1,00,00,000 × 40% = ₹40,00,000
- Subtotal for further taxes: CIF + BCD + AIDC = ₹1,00,00,000 + ₹70,00,000 + ₹40,00,000 = ₹2,10,00,000
- Integrated GST on imported luxury cars (IGST): 28% on Subtotal (for petrol/diesel luxury cars) ₹2,10,00,000 × 28% = ₹58,80,000
- Compensation Cess: Typically between 15% to 22% depending on engine size and vehicle dimensions. Assuming a conservative 15% for the Porsche 911: ₹2,10,00,000 × 15% = ₹31,50,000
Total Landed Cost
(CIF + BCD + AIDC + IGST + Compensation Cess)
₹1,00,00,000 + ₹70,00,000 + ₹40,00,000 + ₹58,80,000 + ₹31,50,000 = ₹3,00,30,000 approx.
That’s how luxury car prices triple when you import them to India.
Additional Taxes and Fees
- RTO Registration: Can range from ₹15 lakh to ₹20 lakh, depending on your state
- Insurance: Luxury car insurance premiums are substantially higher
- Handling and Dealer Fees: Vary by dealer and showroom
Other Important Updates for 2025
- UK-India Free Trade Agreement (FTA): Progressive reduction in import duties for British luxury brands to as low as 10% over 15 years, but under quota limits.
- Mid-sized Cars: Initially face 50% duty falling to 10% over five years under FTAs
Things to Remember While Importing a Luxury Car to India
Before you fall in love with a luxury car abroad and start imagining it parked in your Indian garage, there are a few important details you should be aware of. Importing a luxury car isn’t as simple as shipping it home. It’s a regulated process with strict requirements. Here’s what you need to keep in mind:
1. Rules for Imported New vs Used Cars
As mentioned earlier, importing cars to India has certain rules and regulations that need to be met; failing which can lead to consequences. Furthermore, the regulations to import a brand-new car to India are different from those to import a used car based on whether the car is new or previously owned, its engine size, type of fuel and other aspects. Therefore, before importing a car, it is essential to fully understand these requirements in order to prevent financial consequences or legal issues.
If you’re importing a new car:
- It must be manufactured and assembled outside India.
- The vehicle must be completely new, not registered, sold, leased or loaned before.
- It must be a right-hand drive with headlights suitable for left-side driving.
- The speedometer should display speed in kilometres, not miles.
- Imports are allowed only through the navy ports in Mumbai, Chennai or Kolkata.
If you’re importing a used car:
- The car can’t be older than 3 years from the date of manufacture.
- It should come with a roadworthiness certificate valid for at least 5 years.
- It must be right-hand drive and meet Indian lighting and speedometer standards.
- Used cars must also be brought in through the designated ports.
Vehicle Types That Are Not Allowed
Transfer of Residence Rule
If you’re an NRI or foreign national shifting base to India, you’re allowed to bring a vehicle under the Transfer of Residence clause. Here’s what applies:
- You must have stayed abroad for at least 2 years.
- Post-relocation, you must intend to stay in India for at least 1 year.
- You can import only one vehicle (car or bike), and only one family member can use this benefit.
- The vehicle must be imported within 6 months of moving.
- If the engine is above 1,600cc, it should’ve been owned for at least a year before importing.
Registration Post Import
Once your car lands, it doesn’t end there. You’ll need to register it with your local RTO (Regional Transport Office). Keep in mind:
- Registration charges are separate from import duties.
- Road tax varies depending on your state, the car’s make and ex-showroom value.
Luxury Car Dealers in India Who Handle Imports
While the majority of luxury cars are sold through official brand dealerships, there are also established players who specialise in importing luxury and supercars into India.
These importers are often well-versed in navigating import regulations, sourcing rare models and providing after-sales support. For those looking to bring in high-end vehicles, especially limited editions or models not officially available in India, these dealers offer a reliable alternative to going through the complex process independently.
Big Boy Toyz
Big Boy Toyz (BBT) has become a household name among car aficionados. Headquartered in Gurugram, BBT also has showrooms in Mumbai, Hyderabad and Ahmedabad. While it mainly deals in pre-owned luxury and exotic cars, many of its cars are imported models. From Ferraris to Bentleys, BBT offers an impressive inventory. They also offer complete inspection reports, service history and even customisation options, making it a trusted destination for aspirational buyers.
Auto Hangar
Auto Hangar is one of the oldest and authorised dealers of Mercedes-Benz in India. Based in Mumbai, it has a reputation for bringing in rare AMG and Maybach models on request. Although not a general import dealership, Auto Hangar caters to buyers looking for exclusive builds or configurations not available in the Indian market. Their experience with premium clientele ensures smooth handling of import logistics and luxury after-sales service.
Boys and Machines
Based in Delhi NCR, Boys and Machines specialises in high-end used luxury and sports cars. Their curated collection often includes imported brands like McLaren, Lamborghini and Aston Martin. The team behind Boys and Machines is known for transparency and working closely with buyers to source specific models from overseas markets, handling the complexities of shipping and registration.
The Car Mall
Located in Delhi, The Car Mall deals in both new and pre-owned imported luxury vehicles. They’re known for bringing in rare specs of Range Rovers, Audis and Porsches. The Car Mall offers ready-to-own imports and custom sourcing services for customers looking to skip the wait and complexity of importing directly.
Daytona Exotics
Daytona Exotics specialises in luxury vehicle imports, especially American muscle cars & vintage classics. Based in Mumbai, they’ve built a loyal following by focusing on exclusivity, often showcasing limited-edition or rare colourway models.
Protect Your Imported Beauty
When you’ve spent crores bringing home a machine that turns heads at every signal, it only makes sense to treat it like royalty. Imported supercars are a statement in it’s own. And more delicate than it may look.
Think about it: these cars are tuned for European or Middle Eastern climates. India’s dust, humidity and traffic can take a toll. That’s where specialised detailing and protection studios come in, and not your average neighbourhood car wash.
CarzSpa is one such name trusted by thousands of luxury car owners across India. With over 125 studios and expertise in ceramic coatings, paint protection films and interior detailing, we understand what it takes to keep imported cars looking and feeling brand new.
So, before you take your Italian beast or German beauty for a spin down the road, make sure it’s protected.
Conclusion
Bringing a supercar to India is a heavy emotional & financial decision you make. You have been chasing a dream that began with a poster on your childhood bedroom wall or a game controller in your hands. But it’s also layered with logistics, paperwork, taxes and TLC.
While there’s no denying the thrill of owning something rare and roaring, the process can either be exhilarating or exhausting, depending on who guides you. That’s why picking the right import route, the right partner and even the right post-delivery care can make all the difference.
It’s not all smooth roads. Between the paperwork, import duties and endless waiting, this journey tests your patience. And that’s exactly why what comes after matters just as much.
Because when your car finally arrives, it deserves the same obsession you had while bringing it here. The same precision and the same care.
That’s where CarzSpa comes in. For those who treat their machines like art, every detail matters. Every paint finish, every ceramic coat, every interior clean becomes essential.
If you’ve got a car that turns heads, make sure it stays that way.
After all, importing a supercar into India isn’t a flex. It’s a love letter. And it deserves to be preserved like one.
Frequently Asked Questions
1. How much import tax on a luxury car will I pay in India?
Taxes include customs duty (70%), a 40% cess, GST (28%) and an additional compensation cess (15-22%) depending on the car’s size and engine.
2. How to save tax on luxury cars in India?
You can save on import tax on luxury cars by importing CKD models, using the Transfer of Residence scheme or choosing smaller engines to reduce customs duty on imported cars.
3. What is the import duty on Rolls-Royce in India?
Rolls-Royce faces one of the highest customs duties on imported cars, often around 200% of the car’s overseas price.
4. What is the tax on imported luxury goods?
.Imported luxury goods attract customs duty, IGST and cess, totalling 30-50% tax, making them costly.
5. From where can I buy imported cars in India?
You can buy imported luxury cars from authorised dealerships of brands or specialised luxury car dealers in India, such as Big Boy Toyz, Auto Hangar, and Daytona Exotics, which handle imports.
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