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Two-wheeler registration charges could see massive hike

Two-wheeler registration charges could see massive hike

- New two-wheeler registration cost could go up to Rs 1000 from Rs 50

- Renewal of old two-wheeler registration may cost Rs 2000

- This is to encourage the adaption of electric vehicles 

In yet another move to encourage the adoption of electric vehicles and reduction in the usage of petrol-powered two-wheelers, the government has proposed to exponentially increase the registration cost of new two-wheelers and renewal charges of registration of old two-wheelers. 

In a draft notification, the road transport ministry has sought to increase the price of registering new two-wheelers to Rs 1000, as opposed to the current price of Rs 50. Meanwhile, it has also suggested hiking the registration renewal charges of old two-wheelers from Rs 50 to Rs 2000. A similar hike has been proposed for four-wheelers as well. While the registration cost of new four-wheelers (petrol and diesel) now stands at Rs 600, it might shoot up to Rs 5,000. What’s more, the renewal of registration of old four-wheelers, which now costs Rs 600, may demand a hefty sum of Rs 10,000. 

The prime objective of hiking these prices is to discourage the buyers from opting for conventional vehicles and choosing electric ones instead, which will continue to demand low registration costs. This comes in just a few days after the GST council slashed the tax imposed on EVs and chargers. While the GST on electric vehicles has gone down from 12 per cent to 5 per cent, the tax on EV chargers has been reduced from 18 per cent to 5 per cent. 

The Indian two-wheeler market is already facing the brunt of increased prices which is clearly visible by consistently dropping sales of motorcycles and scooters with each passing month. Now that the sales were expected to catapult in the coming festive season, with such a substantial hike in registration chargers, the numbers may continue to dive further. 

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