Many videos on social media claim that you can buy cheap used cars in Dubai and sell them in India for a huge profit. However, the reality is very different. Due to heavy customs duties and strict RTO rules, importing a used car is not a profitable business idea for common people. The cost usually triples by the time the vehicle reaches Indian roads.
Why Importing Used Cars is Difficult?
The biggest hurdle is that most cars in Dubai are Left-Hand Drive (LHD). In India, LHD cars are completely banned and cannot be registered under the Motor Vehicles Act. Even if you find a Right-Hand Drive (RHD) car abroad, the import duty is extremely high. Scammers often claim they can bypass customs through ‘settings’, but this leads to vehicle seizure at the port.
Official Government Rules (2025-2026)
According to DGFT guidelines, anyone wishing to import a car must follow these strict rules:
- The car must be Right-Hand Drive (RHD).
- The manufacturing date must not be older than 3 years.
- The car must have a speedometer in Kilometers, not Miles.
- It must pass testing by ARAI in India, which costs lakhs of rupees.
- Import is allowed only via Mumbai, Chennai, or Kolkata ports.
Tax Calculation: How 10 Lakh becomes 31 Lakh
The customs duty on used cars is around 125% to 200% to protect local manufacturing. Here is a simple breakdown of the costs:
| Car Cost in Dubai | ₹10,00,000 |
| Shipping + Insurance | ₹1,00,000 |
| Customs Duty (125%) | ₹13,75,000 |
| Other Taxes & Cess | ₹6,37,500 |
| Final Landed Cost | ₹31,12,500 |
After paying this amount, you still have to pay State RTO charges which can range from 10% to 20%.
Transfer of Residence (ToR) Exception
There is one exception for NRIs returning to India permanently. Under the ‘Transfer of Residence’ rule, you can bring one car. However, strict conditions apply: you must have owned it for at least 1 year abroad, and you cannot sell it in India for 2 years (Lock-in period).
