New Rules Impose Higher Renewal Fees on Older Vehicles

The Indian government has recently announced increased renewal fees for vehicles that are 20 years or older. This change, detailed in the Central Motor Vehicles (Third Amendment) Rules 2025, aims to reduce the number of older vehicles on the roads. The renewal fee for motorcycles has been increased to 2,000 rupees, from the previous 1,000 rupees. Owners of three-wheelers or quadricycles will now pay 5,000 rupees for renewal, up from 3,500 rupees. The renewal fee for light motor vehicles has increased to 10,000 rupees, compared to the previous 5,000 rupees. For imported two or three-wheelers, the renewal fee is now 20,000 rupees, up from 10,000 rupees. Imported four-wheelers and larger vehicles will face an 80,000-rupee renewal fee, a significant increase from the previous 40,000 rupees. Other vehicles will be charged 12,000 rupees. These fees do not include GST. Vehicles older than 15 years can be re-registered, but their age cannot exceed 20 years. The government’s goal is to encourage the replacement of older vehicles with newer models, improving safety and reducing environmental pollution. This move is part of a broader strategy, including the implementation of a vehicle scrappage policy.