India’s appetite for electric vehicles (EVs) is growing rapidly, but buying an EV that’s not available locally still requires navigating through a maze of regulations, taxes, and procedures. For many, importing an EV from abroad—be it a Tesla, BYD, or a niche European model—might offer features or value unavailable in domestic models.
However, importing an EV into India isn’t as simple as placing an online order. This guide provides a complete buyer’s checklist along with a comparative look at EV import policies across countries, helping you make the most informed decision possible.
1. Understanding EV Import Routes in India
A. Completely Built Units (CBU)
These are fully assembled vehicles imported directly into the country. However, CBUs attract the highest import duties:
- EVs priced below $40,000: Approx. 60–70% import duty
- EVs priced above $40,000: Up to 100% import duty
This makes CBUs the most expensive route unless imported under special schemes.
B. Semi-Knocked Down (SKD) and Completely Knocked Down (CKD) Units
Manufacturers can bring vehicles in parts and assemble them in India.
- SKD Units: Approx. 15% import duty
- CKD Units: Approx. 10% import duty
This method significantly reduces tax burden and is widely used by companies setting up local assembly lines.
C. New EV Import Policy (2025)
Under the latest import policy, manufacturers who commit a minimum investment of ₹4,150 crore and set up local manufacturing facilities can import up to 8,000 EVs per year at a concessional 15% import duty, provided each imported EV has a minimum CIF (cost + insurance + freight) value of $35,000 or more.
2. Cost Breakdown: Importing a $50,000 EV into India
Here’s how much it might cost to import an EV via the CBU route under standard and concessional duties:
A. Under Standard 100% Duty
| Item | Value (₹) |
|---|---|
| CIF Value | 37,00,000 |
| Import Duty (100%) | 37,00,000 |
| Subtotal | 74,00,000 |
| GST (5%) | 3,70,000 |
| Total Cost | ₹77,70,000 |
B. Under New 15% Duty Scheme
| Item | Value (₹) |
|---|---|
| CIF Value | 37,00,000 |
| Import Duty (15%) | 5,55,000 |
| Subtotal | 42,55,000 |
| GST (5%) | 2,12,750 |
| Total Cost | ₹44,67,750 |
This clearly shows the financial advantage of using the new policy, especially for high-end EVs.
3. Buyer’s Checklist for Importing an EV
Step 1: Confirm Eligibility for Concessional Duty
Ensure the EV is eligible under India’s concessional import scheme. The manufacturer must have committed to local production and the EV must be priced above $35,000.
Step 2: Choose the Right Import Method
Decide between:
- CBU (easiest but costly)
- SKD/CKD (requires local tie-ups or third-party support but more affordable)
Step 3: Check Vehicle Compliance
The EV must:
- Comply with India’s Automotive Industry Standards (AIS)
- Be homologated for Indian roads
- Have compatible charging systems (preferably CCS2 or Bharat DC)
Step 4: Arrange Import Logistics
Hire a certified import-export agent or freight forwarder. You’ll need to handle:
- Shipping documentation
- Customs clearance
- Duty payments
- Registration process
Step 5: Calculate Final Ownership Costs
Include:
- CIF value
- Import duties
- GST
- Insurance
- RTO registration
- Charging setup
Step 6: Register the Vehicle
After customs clearance, register the EV at the Regional Transport Office (RTO). Many states offer:
- Road tax waivers
- Registration fee exemptions
Step 7: Plan Charging Setup
If you live in an apartment, consult the society management and DISCOM. CCS2 or home AC chargers are most practical.
4. Country Comparison: EV Import Policies
| Country | Import Duty (CBU) | GST/VAT | Local Assembly Option | Key EV Incentives |
|---|---|---|---|---|
| India | 60–100% (CBU); 10–15% (SKD/CKD); 15% (new policy) | 5% GST | Yes (preferred route) | Tax deductions, road tax waivers |
| USA | 0% | Sales tax by state | Yes | $7,500 federal credit + state rebates |
| UK | 0% (from EU) | 20% VAT | Yes | Plug-in car grant (for select EVs) |
| China | 0% (domestic) | 13% VAT | Yes | License plate waivers, subsidies |
| Germany | 10% | 19% VAT | Yes | Up to €9,000 government subsidy |
| Australia | 0% | 10% GST | Selective | Fringe benefits tax exemption |
India remains one of the costliest markets to import an EV, unless the vehicle is imported under the concessional scheme or as CKD/SKD kits.
5. Ownership Considerations
Before importing, think beyond the buying cost:
A. After-Sales Service
Imported EVs may lack local support. Ensure spare parts availability and service tie-ups.
B. Warranty Validity
Manufacturer warranty may not apply globally. Clarify coverage for battery and drivetrain.
C. Charging Compatibility
Confirm charger type and home installation. CCS2 is standard across India; avoid CHAdeMO unless adaptable.
D. Resale Value
Imported EVs may have lower resale due to limited brand recognition and service networks.
6. Real-World Example: Tesla Model Y Import Estimate
- US Price: $50,000
- CIF to India: ~₹37,00,000
- Duty (100%): ₹37,00,000
- GST (5%): ₹3,70,000
- Final Price: ~₹77.7 lakh
If Tesla enters under the 2025 scheme:
- Import Duty (15%): ₹5,55,000
- Final Price: ~₹44.7 lakh
This is a savings of over ₹30 lakh—showing the importance of waiting for brand partnerships under the new EV policy.
Conclusion
Importing an EV to India is no longer out of reach. With the 2025 policy bringing down import duties, and local CKD/SKD assembly growing rapidly, international EVs are becoming more accessible. However, thorough planning is crucial—understanding duties, compliance requirements, warranty concerns, and resale impact.
A smart buyer will balance cost, availability, serviceability, and compliance, while also comparing the import regulations across countries to understand what they’re paying for.
Frequently Asked Questions (FAQ)
Q1: Can any EV be imported to India under the new scheme?
No. Only EVs priced at $35,000 or above, imported by manufacturers committed to ₹4,150 crore investment, are eligible for 15% duty.
Q2: What’s the cheapest way to import an EV into India?
Importing as CKD/SKD kits and assembling locally attracts the lowest duties (10–15%) but requires infrastructure and partnerships.
Q3: Do imported EVs qualify for Indian incentives?
Only partially. State-level road tax waivers and registration fee exemptions may apply, but central subsidies like FAME-II are reserved for locally made EVs.
Q4: Is it legal to drive a left-hand-drive imported EV in India?
No. All vehicles in India must be right-hand-drive and comply with Indian homologation standards.
Q5: What charger type do I need for imported EVs?
Most EVs use CCS2 or Type 2 connectors. Make sure the EV is compatible with India’s AC/DC charging infrastructure before import.