For a car with an ex-showroom price of Rs 8 lakh, the on-road price works out to roughly Rs 9.21 lakh, as per a worked example on the CarInfo website. The extra amount of around Rs 1.2 lakh is made up of a few separate charges.
Road tax is the largest of these. In the example, the tax is 11% of the ex-showroom price and a cess of about 2% is charged on that tax amount. The registration fee for a private car is quoted at Rs 600, and first-year comprehensive insurance of Rs 30,000 is added.
The insurance is counted in every case, as a car cannot be registered without a policy. GST is not added again, since the ex-showroom price already includes it.
Why the same car costs more in some cities
The road tax rate is fixed by each state government, and this is the biggest reason the on road price of the same car differs between cities. Buyers often compare quotes from dealers in two cities and find a large gap, although the ex-showroom price is almost the same.
MyCarHelpline's 2026 state-wise guide shows that road tax across the states ranges from about 4% to 22% of the ex-showroom price.
For a private car, the tax is paid once as a lifetime levy covering 15 years from the date of registration, as per Motomotar. After that period, only the registration is renewed.
The registration fee also varies. One calculator on Paisamath puts it anywhere between Rs 600 and Rs 10,000, depending on the regional transport office (RTO).
Charges that apply only to some buyers
Some charges are added only in certain cases. For cars priced above Rs 10 lakh, tax collected at source (TCS) of 1% is added to the on road price, as per Paisamath.
A hypothecation charge of about Rs 1,500 is added when the car is bought on loan, CarInfo says. The bank's claim on the vehicle is entered in the registration records and buyers paying in cash do not pay this charge.
The tax waivers for electric vehicles were also changed in several states in 2026, so the figure given by the local RTO is the one that finally applies.
