Government doubles renewal fees for vehicles over 20 years to promote clean air

The central government has announced a steep hike in the renewal charges for motor vehicles older than 20 years, in a move aimed at promoting cleaner alternatives. The Ministry of Road Transport & Highways (MoRTH) issued a notification on Thursday finalising the Central Motor Vehicles (Third Amendment) Rules, 2025, which nearly doubles renewal fees across categories.

What Has Changed?

Under the new rules, the cost of renewing registration certificates has increased sharply:

• Motorcycle: ₹2,000 (earlier ₹1,000)
• Three-wheeler/Quadricycle: ₹5,000 (earlier ₹3,500)
• Light Motor Vehicle (LMV): ₹10,000 (earlier ₹5,000)
• Imported 2- or 3-wheelers: ₹20,000 (earlier ₹10,000)
• Imported 4-wheelers or more: ₹80,000 (earlier ₹40,000)
• Other vehicles: ₹12,000

The revised fees exclude Goods and Services Tax (GST). Vehicles older than 15 years can still be re-registered, but only up to 20 years from their original registration date.

Why the Hike?

The price hike ties in with the government’s broader vehicle scrappage policy, which seeks to gradually replace ageing vehicles with newer models meeting modern safety and emission standards.

Delhi-NCR context

The revision has come just a few days after the Supreme Court ordered authorities not to take coercive action against owners of petrol vehicles older than 15 years and diesel vehicles older than 10 years in Delhi-NCR. The decision offered temporary relief to vehicle owners after the Delhi government briefly barred fuel refilling for such vehicles in July.

Restrictions on ageing vehicles in the capital region date back to 2014, when the National Green Tribunal (NGT) banned 15-year-old vehicles, followed by a 2015 order targeting diesel vehicles over 10 years. In 2018, the Supreme Court upheld the ban, terming such vehicles ‘end-of-life’.

What does it mean for owners?

For individuals still holding on to older cars, motorcycles, or three-wheelers, the choice has now become more pressing: either bear significantly higher renewal costs or consider scrapping the vehicle.

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