Old Vehicle Renewal Fee: The government has made a significant move by doubling the renewal charge for motor vehicles over 20 years old. The action has been taken to promote cleaner options on the road. The Ministry of Road Transport and Highways (MoRTH) released a notification issuing the Central Motor Vehicle (Third Amendment) Rules, 2025. The renewal fee for registration certificates has increased drastically for all categories.
New Renewal Fee System
According to the new rules, two-wheelers such as motorcycles will now have to pay ₹2,000 for renewal from the previous ₹1,000. Three-wheelers and quadricycles will have to pay ₹5,000 from the previous ₹3,500. Light Motor Vehicles (LMVs), which include cars, have had their renewal fee increased to ₹10,000 from ₹5,000. Imported two or three-wheelers will have to pay double the renewal fee at ₹20,000. Four-wheelers imported and above will now draw ₹80,000, a steep hike from ₹40,000. The rest of the vehicles not included in these categories will need to pay ₹12,000. These rates do not include Goods and Services Tax (GST).
Relation With Vehicle Scrappage Policy
The rise in renewal fee is just a part of the government’s overall scrappage policy. The plan is to phase out older vehicles that do not conform to current safety and emission standards over a period of time. Older vehicles beyond 15 years can be renewed, but renewability is permitted only until 20 years after their original registration. By increasing the fees, the government is indicating its intention to move towards replacing older vehicles with greener and safer alternatives.
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