The Ministry of Road Transport & Highways (MoRTH) has issued a fresh notification, announcing a steep hike in registration renewal fees for vehicles older than 20 years. This move aims to discourage people from keeping outdated and polluting vehicles on Indian roads, thereby promoting cleaner and safer transportation.

New Registration Fee Structure Explained for 20+ Year Old Vehicles

According to the new guidelines, owners of light motor vehicles (LMVs) such as cars and jeeps will now have to pay ₹10,000 for renewal of registration certificates, up from ₹5,000 earlier.

• Motorcycles over 20 years old: Fee increased from ₹1,000 to ₹2,000.
• Three-wheelers and quadricycles: Charges revised from ₹3,500 to ₹5,000.
• Imported two- and three-wheelers: Renewal cost fixed at ₹20,000.
• Imported cars and larger vehicles: Massive hike to ₹80,000 per renewal.

This sharp increase is part of the government’s long-term strategy to phase out older vehicles and reduce emissions.

Why the Renewal Fee Hike Now?

The draft amendment was first floated in February 2025 and finalized on August 21, 2025. Earlier, in October 2021, MoRTH had already increased registration charges for multiple vehicle categories. This latest hike continues the push to enforce the Vehicle Scrappage Policy, encouraging owners to replace ageing vehicles with newer, fuel-efficient, and eco-friendly options.

Read also: J&K Vehicle Buyers Overcharged: Road Tax Collected on GST Despite Union Government Ban

Impact on Vehicle Owners in Delhi-NCR

Interestingly, this comes soon after the Supreme Court’s order that stopped authorities in Delhi-NCR from taking coercive action against owners of diesel vehicles older than 10 years and petrol vehicles older than 15 years. The Court emphasized that enforcement should consider vehicle usage and condition, not just age.

However, with the revised registration costs, many vehicle owners may find it financially unviable to retain old vehicles even if legally permitted, pushing them toward scrapping or upgrading.

What This Means for Car and Bike Owners

For lakhs of Indians who still use older cars, scooters, and motorcycles, this fee hike will significantly increase the cost of ownership. Vehicle owners now face three choices:

1. Pay the high renewal fees and keep their old vehicle.
2. Opt for scrappage incentives under the government’s scrappage scheme.
3. Buy a new vehicle, benefiting from improved fuel efficiency, safety, and emission standards.

By making it expensive to hold on to ageing vehicles, the government hopes to reduce air pollution, road accidents, and maintenance issues. At the same time, it is encouraging the adoption of electric vehicles (EVs) and modern BS-VI compliant cars.