Home Bike News Cars, bikes to get expensive - Up to 4,000 percent hike in...

Cars, bikes to get expensive – Up to 4,000 percent hike in RTO fees proposed

Road transport ministry has proposed a registration fee hike draft notification. The proposal is for 5k for registration of a new petrol or diesel car. Registration renewal is proposed at 10k. Currently both cost Rs 600 each.

New two-wheelers registration fee is proposed at 1k up from the current charge of 50 bucks 50. Renewal charges are set to go upto 2k. Registration fee and renewal charges for cabs are proposed at 10k and 20k, up from the current 1k.

The proposal is discouraging of petrol and diesel vehicle registrations, and does seem favourable to EV registrations. However, the guidance isn’t likely to have any immediate effect as electric passenger vehicles on offer are few and far in between, and at 5k or 10k, registration or renewal is an affordable fraction of average vehicle purchase price.

RTO registration fees hike

Proposed registration fee for imported motorcycles is Rs 20,000, up from the current Rs 2,500. Registration of imported vehicles is proposed at 40k, up from 5k. If passed, the hike in fees will be up to 4,000%. The reason Govt plans on increasing registration fees by such high percentage, is to promote scrapping.

In encouraging scrappage, those who present a scrapping certificate for a previously owned vehicle from a recognised Govt approved agency, will be exempt from paying registration fee for a vehicle of the same category. A scrapping certificate isn’t valid for multiple registrations.

Proposed measures to keep older vehicles off the road now appear to have a more solid direction. Renewal of certificate of fitness of transport vehicles older than 15 years is proposed to be conducted every six months. Currently, it’s conducted once a year.

Fees for fitness test and grant, and renewal of certificate of fitness for motor vehicles older than 15 years is to be hiked. The move aims to curb vehicular pollution by ridding roads of unfit vehicles. Scrappage if implemented in a straightforward manner can help spur sales.

Ministry of Road Transport & Highways’ draft notification to amend Central Motor Vehicles rules looks to provide a boost to electric vehicles. In a boost to battery operated vehicles, the category continues to be exempt from registration, and renewal fees.

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