The on-road price is what you actually pay to drive a new car home. It starts with the ex-showroom price and adds government charges, insurance and a few dealer items.
Ex-showroom price
The price of the car at the dealer, including GST. It can differ slightly between states.
Road tax
How states compare
Charged once by your state, usually as a percentage of the ex-showroom price. Karnataka is among the most expensive states; Maharashtra and Delhi fall in the middle.
For electric cars
Most states offer steep discounts or zero road tax on electric vehicles. Check your state's transport department for the exact rate.
Registration and RTO fees
Fixed fees for registration, number plates, the smart card and hypothecation if you take a loan.
Insurance
Third-party vs own-damage
New cars must have three years of third-party cover; most buyers add one year of own-damage cover on top. Third-party is mandatory; own-damage is optional but strongly recommended for a new car.
Buying outside the dealer
You do not have to buy insurance from the dealer, and comparing quotes on aggregators often saves ₹3,000–₹8,000.
TCS
If the car costs more than ₹10 lakh, the dealer collects 1% tax at source. You can claim it back when you file your income tax return.
What you can reduce
- Insurance: compare quotes outside the dealer.
- Extended warranty and accessories: optional, so pick only what you need.
- Handling or logistics charges: not a government charge; question them.