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India: the gap between ex-showroom and on-road

An Indian car has two prices, and the one advertised is not the one you finance. GST is inside the ex-showroom price, but road tax and registration are added on top, and the gap between the ex-showroom and on-road figures is exactly that: road tax, registration and insurance, set by each state.

Road tax and registration commonly run about 6% to 12% of the ex-showroom price, which is why this page opens on 10% as a middle figure and expects you to change it. The spread is wider than that at both ends: a few states and union territories charge low single digits, while Karnataka and Kerala run well into the teens. Enter the ex-showroom price, set the rate your RTO charges, and the calculator produces the on-road total and the loan against it.

A ₹12,00,000 car at 10%

Ex-showroom ₹12,00,000, road tax and registration at 10% = ₹1,20,000, giving an on-road figure of ₹13,20,000 before any dealer charges. At 9% over 60 months with nothing down, that is roughly ₹27,400 a month.

There is no trade-in credit. Where an American buyer part-exchanging a car pays sales tax on the price after the trade-in is deducted, an Indian buyer in the same position pays road tax on the full price. A trade-in still lowers what you borrow; it simply does not lower the tax.

For how the calculation works, the formula behind it and what it leaves out, see the full guide.

Data sources

  • Indian consumer finance conventions

    Effective 2022-07-01 onward · retrieved 2026-08-30

    Road tax rates and the retirement age both vary by state and by employer.

    How we checked these figures

    The Reserve Bank requires issuers to disclose the annualised rate but sets no ceiling on it.

    Current

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page with the official sources they came from.

CentExact Editorial · Research & verification

Every CentExact calculator is built from the published finance formula, tested against spreadsheet, lender and tax-authority figures, and reviewed when the underlying rates or rules change.

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This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.