Buying6 min readUpdated 20 Jul 2026
Ex-showroom vs on-road price explained
What makes up your on-road price in India — RTO, insurance, TCS, and how to spot inflated dealer quotes.
What is ex-showroom price?
Ex-showroom is the manufacturer's price at the factory gate plus GST. It does not include registration, road tax, insurance, or dealer handling charges.
On-road = ex-showroom + mandatory charges
On-road price adds: RTO/road tax (varies by state and vehicle price slab), first-year insurance, TCS at 1% if ex-showroom exceeds ₹10 lakh, and miscellaneous dealer charges (typically ₹3,000–10,000).
Diesel costs more to register
Many states levy an extra surcharge on diesel vehicles at registration — sometimes 2–4% additional RTO. Factor this when comparing petrol vs diesel on-road prices.
Frequently asked questions
Why is on-road price different in every city?+
RTO rates differ by state. Insurance also varies with zone and insurer. The same car can have ₹50,000–1,50,000 on-road difference between cities.
What is TCS on cars?+
Tax Collected at Source (1%) applies when ex-showroom price exceeds ₹10 lakh. It is collected by the dealer and adjustable against your income tax.
Can I negotiate on-road price?+
You can negotiate discounts on ex-showroom, free accessories, and insurance. RTO is fixed by law — dealers sometimes inflate it on paper and offer a 'discount' that isn't real savings.