Car prices in different states vary depending on a number of charges that add up to make the final on-road price of a vehicle.
Ex-showroom price - The ex-showroom price is the selling price of a vehicle before adding the registration charges, road tax and insurance. It can vary up to 5% across different states.
Registration charges - The cost incurred in allocating a unique number to the vehicle by the local Regional Transport Office (RTO) is the registration charge. It differs from state to state.
Road Tax - This is the tax collected to drive your vehicle on the road. The amount of road tax varies across states, costing anywhere between 3% - 20% of the ex-showroom price.
There are other charges too that add up to compute the final on-road price of a vehicle. These include- Green cess, TCS (Tax Collected at Source) and Insurance.
For better understanding, we have taken the reference of Hyundai Creta .
1. Himachal Pradesh
Road tax in Himachal Pradesh is among the lowest in India, making it the cheapest state to own a car. The state levies taxes on a car based on its engine size. For cars with up to 1000cc engine, the road tax is a mere 2.5%. For cars with larger engines, the road tax is 3%. The on-road price of Hyundai Creta in Himachal Pradesh is 11.17 lakh.
2. Punjab
Punjab has an extremely simple road tax system. 8% tax is levied on all vehicles with an additional 1% cess for Social Security. The on-road price of Hyundai Creta in Punjab is ? 11.63 lakh.
3. Pondicherry (Puducherry)
The Union Territory of Pondicherry is one of the cheapest places in India to own a car. The road tax structure of the state is elaborate. The road taxes in Pondicherry range between 6% - 9% based on the ex-showroom price of the car. The on-road price of Hyundai Creta in Pondicherry is 10.87 lakh.
4. Jharkhand
Road tax in Jharkhand is slightly more relaxed as compared to the tax in the neighbouring states. For vehicles costing up to 15 lakh, the road tax is 6%. For vehicles costing more than 15 lakh, 9% road tax is levied. The on-road price of Hyundai Creta in Jharkhand is 11.64 lakh.
5. Gujarat
With a 6% road tax on all privately registered vehicles, Gujarat makes it to the list of the cheapest states in India to own a car. The on-road price of Hyundai Creta in Gujarat is 11.40 lakh.
6. Chandigarh
The road tax structure of the Union Territory of Chandigarh is quite simple, with relaxations for public welfare workers (registered with Social Welfare Department). Chandigarh imposes 0% road tax on vehicles owned by people with disabilities and social welfare workers. 6% road tax is levied on vehicles costing up to 20 lakh and 8% on those costing more than ?20 lakh. The on-road price of Hyundai Creta in Chandigarh is 11.15 lakh.
7. Assam
Road taxes in Assam are not as high as other states in India, and the tax structure is simple and well-defined. The road taxes in Assam ranges between 5% to 12%, based on the ex-showroom price of the car. The on-road price of Hyundai Creta in Assam is 11.25 lakh.
8. Jammu & Kashmir
The Union Territory (former state) of Jammu & Kashmir has the simplest road tax structure in the entire country at the moment. J&K levies 9% road tax on all road users. The on-road price of Hyundai Creta in Jammu and Kashmir is 11.58 lakh.
9. Uttarakhand
The road taxes in Uttarakhand are not extremely expensive when compared to the road taxes levied by other states. The road taxes in Uttarakhand range between 8% to 10% based on the ex-showroom price of the car in question. The on-road price of Hyundai Creta in Uttarakhand is 11.87 lakh.
10. Haryana
Haryana is yet another state that imposes a simple road tax based on the ex-showroom price of the car. Road taxes in Haryana range between 5% to 10%. The on-road price of Hyundai Creta in Haryana is 11.68 lakh.
Conclusion
Car prices vary across different states depending on the various charges that add up to compute the final on-road price of a vehicle. These include the ex-showroom price, registration charges, road tax, insurance charges, etc. Karnataka levies the highest road tax on vehicles charging up to 18%. Himachal Pradesh, on the other hand, has the lowest road tax among all the states in the country charging about 2.5% - 3% of the ex-showroom price of the vehicle. The states of Punjab, Haryana, Assam, Gujarat, Uttarakhand, Jharkhand, and the union territories of Jammu & Kashmir, Pondicherry, and Chandigarh make up the list of the Cheapest states to own car in India.
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