Indian Government Doubles Renewal Fees for Vehicles Over 20 Years Old

The Ministry of Road Transport and Highways (MoRTH) on August 20, 2025, announced amendments to the Central Motor Vehicles Rules, 1989, revising renewal fees for vehicles across India (excluding NCR).

The new policy shifts the threshold for higher registration charges from 15 years to 20 years, targeting vehicles that predate Bharat Stage-II norms.

As per the notification, domestic two-wheelers now face a Rs 2,000 fee (up from Rs 1,000), while three-wheelers and quadricycles have risen to Rs 5,000 (from Rs 3,500).

Renewal of registration for light motor vehicles (cars and SUVs has doubled to Rs 10,000. Imported two- and three-wheelers now face Rs 20,000, while imported cars have surged to Rs 80,000. Imported motorcycles specifically see a fourfold jump to Rs 40,000.

According to officials, the move is intended to discourage the use of older, high-polluting vehicles, which contribute heavily to India’s deteriorating air quality.

The steep hike in vehicle registration charges complements India’s 2021 vehicle scrappage policy, designed to gradually retire ageing vehicles. It also builds on Supreme Court directives of 2018, which restricted the use of older petrol and diesel vehicles.