By the end of this year, a new law will require car manufacturers in India to get ‘green ratings’ for their cars, which will measure the overall fuel efficiency and environment friendliness of their cars. On their part, carmakers are said to be worried about the implementation of this law, with major concerns being voiced about accuracy of the testing that would lead to the aforementioned green ratings.

This ‘green ratings’ move is aimed at encouraging carmakers to enhance the fuel efficiency of their vehicles and make them more environment-friendly. The ratings system would apply to locally produced as well as imported cars and would be supervised and might be administered by the Bureau of Energy Efficiency, which already has a similar system in place for things like air-cond...

With tighter norms for car imports, we may see fewer fancy cars in India

The GOI has tightened the norms for import of high end cars and SUVs by hotels, travel agents and tour operators, following reports of misuse of tax concessions available on import of vehicles for tourism.

‘In order to ensure proper and intended use of vehicles under Export Promotion Capital Goods (EPCG) Scheme, customs authorities will endorse that such vehicles have to be registered as a vehicle ‘for tourist purpose only’ while clearing such vehicles,’ says a Directorate General of Foreign Trade (DGFT) circular.

There have been reports that high value vehicles imported under the scheme have been sold to various politicians, businessmen and actors...