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With this rule, any vehicle that costs less than US$40,000 would need to be homologated first before it is allowed to be registered. In essence what this means is that you would need to buy 3-4 vehicles of the same make & model and hand those over to ARAI to conduct theirs tests on.
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If they want to dissuade the import of sedans cheaper than 18 Lac rupees ($40,000), I am in full support of it. We have almost every major manufacturer in India who are offering a very comprehensive range of cars in the 2L - 18L price band.
Its only when you start climbing up the price ladder that the options start thinning out. I think it makes sense to restrict the import of cars lower than $40,000. Mind you, I am not talking about bikes here.
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This is why the TOR route is still, in reality, the only real way to bring a vehicle into India. For an individual that is.
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Unless the car value is above $40,000?