Two-wheeler Registration Fee Could Be Increased By 1900 Per Cent!

The government has proposed a steep hike in the registration fee of new and old vehicles

• If it comes into effect, buyers have to pay Rs 1,000 as registration fee for a new two-wheeler.
• Fee for registering old two-wheelers could be increased as well.
• The new proposal is targeted at improving the rate of EV adoption in the country. 

A few days back, the government announced that the GST on electric vehicles and electric chargers has been reduced from 12 per cent to 5 per cent. However, to encourage faster adoption of EVs in the country, the government has proposed a hike in the registration fee of conventional vehicles as well. And it is in no way a nominal hike. 

As per this proposed draft, the registration fee for new two-wheelers could be increased from Rs 50 to Rs 1,000. That’s a jump of 1,900 per cent! Additionally, the Road and Transport Ministry has also proposed to increase the registration fee for renewal of old two-wheelers from Rs 50 to Rs 2,000. As of now, this proposal is still under consideration, but judging by the fact that the government is too keen on shifting the entire industry from fossil fuel to electricity as soon as possible, this proposal might soon be a reality. 

If it does come into effect, the two-wheeler industry will be hit pretty badly. Bike manufacturers are already facing a tough time when it comes to sales. Not only have they had to update their entire portfolio with BS6-compliant engines, they also have to work on EVs. Additionally, the festive season is just around the corner and if this revised fee comes into effect, sales during this season might take a hit as well.