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Regular-article-logo Thursday, 15 May 2025

HURDLES TO UNBRIDLED IMPORT OF USED CARS 

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FROM OUR CORRESPONDENT Published 31.03.01, 12:00 AM
New Delhi, March 31 :    New Delhi, March 31:  For auto majors scared of the impending flood of cheap second-hand imports ending their grip over the market, its time to let the champagne flow. The Exim policy, unveiled today by commerce and industry minister Murasoli Maran, has brought in a set of non-tariff environmental and vehicle design stipulations for imports of second-hand cars, which will effectively shield the domestic auto industry. The government has closed its doors on left-hand drive vehicles and those more than three years old. Further, it stipulates the second-hand vehicles should have a minimum road worthiness of five years, with an assurance to provide service facilities within the country. The new cars, jeeps and Land Rovers which can be imported from April, should have an engine capacity of less than 1000 cc or beyond 2,500 cc. Second-hand automobiles should have a speedometer to indicate the speed in kilometres and the photometry of the headlamps should suit the 'keep left' traffic. The Exim policy defines a second-hand vehicle as one which has been sold, leased or lent, or been registered for use in any country according to the laws of that country, prior to its import into India. All vehicles will have to conform to the provisions of the Motor Vehicle Act, 1988. Besides, all new vehicles being imported into the country, should not be manufactured or assembled in India, not registered for use in any country prior to their import and should not be sold, leased or lent before their import. Importers or dealers will also have to submit a certificate issued by a testing agency that the vehicle has been tested immediately before export to India and conforms to the regulations of the Motor Vehicle Act. An elated B.V. R. Subbu, director marketing Hyundai Motors India, said: 'The government appreciates our role and has consequently taken these steps. For the government, the choice was between industrialisation and de-industrialisation and they have voted for the former.' Industry feared that they would be washed away by the flood of cheap second-hand imports, and many would be forced to close shop. Jagdish Khattar, managing director, Maruti Udyog Ltd, said: 'The exim policy has laid down certain standards for the import of passenger cars, keeping in view road safety and environment considerations. 'While offering consumers the option of importing cars, the policy safeguards their interests by ensuring that only players with a commitment to quality and service are able to do business,' he added. Scooters with an engine capacity over 50cc, but not more than 500cc, can also be imported. For motorcycles, the engine capacity should be over 250cc but not exceed 800cc. Imports of second-hand lorries and trucks, both assembled and completely-built units, over 5 tonnes, other than refrigerated trucks, have been allowed. The same rule holds for imports of new assembled or completely built lorries and trucks. Another rider for second-hand vehicle imports is that they will be able to enter the country only through the Mumbai port. New vehicles, however, will be allowed to make their entry through the Nhava Sheva (Mumbai), Calcutta and Chennai ports.    
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