Cars above $40,000 can forget homologation

NEW DELHI: Premium car importers have every reason to cheer. The mini exim policy has notified homologation-free import of cars priced above $40,000. According to the notification, new cars over CIF value of $40,000 (which translates to Rs 36 lakh after 102% peak import duty) can be imported either by “an individual or company or firm under the EPCG scheme� without homologation. This, however, is subject to an approval certificate from an internationally accredited agency that meets with ECE regulations.
What it means is that luxury carmakers, and their importers in India, a group that has long lobbied against the mandated ARAI homologation, will now be able to bring in cars without homologation hassles. While it means easier entry for premium carmakers like BMW, Audi and Nissan, all of which are slated to import and sell their models in India, it would save assemblers like DaimlerChrysler a significant amount on CBU models like the M-class, SL 500, SLK or the just-launched Maybach. “DaimlerChrysler India spends Rs 2-3 crore a year on homologation because the cars have to be revalidated every 6 months,� said company spokesperson S Kadlaskar. “The company had optimised the number of imported models from 13 to 10 last year to cut down on homologation costs.�The policy has also increased the number of entry points for imported cars from the earlier four to six adding Delhi Airport and ICD Tughlakabad to the list. Earlier cars could be imported into the country through Nava Sheva, Chennai and Kolkata ports and the Mumbai Airport. Also, people importing cars under the transfer of residence permit will now be able to bring in their vehicles after two years without homologation as long as the car is more than a year old.
The policy has also allowed unlimited homologation-free import of prototypes which were earlier restricted to 10 vehicles. Under the new rules, a manufacturer with a bona fide R&D facility can import as many prototypes for testing as it wants. These can later on be sold off after written permission from the department of science and technology.