Buying Guide · Buying Advice
How the On-Road Price of a Car Is Calculated in India
Ex-showroom is only the starting point. Here is what road tax, registration, insurance and TCS add, and why the same car costs different amounts in different states.
By Super Admin · · Updated 24 Sep 2026
The price in a car advertisement is almost always the ex-showroom price: the vehicle, GST and cess, delivered to the dealer. What you actually pay to drive it home is the on-road price.
1. Road tax
Road tax is set by each state, usually as a percentage of the ex-showroom price, and often in slabs by price, fuel type and engine size. This is the main reason one car costs more in one state than another. Many states waive or reduce road tax on electric vehicles.
2. Registration
A fixed fee covers registration, the high-security number plate and the RC smart card.
3. Insurance
New vehicles need a first-year comprehensive policy plus long-term third-party cover. Premiums depend on the insurer, add-ons and the vehicle's value, so any figure shown before you buy is an estimate.
4. TCS
For vehicles priced above ₹10 lakh, the dealer collects 1% tax at source. You can adjust it against your income tax.
5. Other charges
FASTag, handling and optional accessories may also appear on a quotation. Ask the dealer to itemise every line.
The on-road prices on this site are estimates built from published rates. Always confirm the final figure with an authorised dealer.
Vehicles in this article
