Vehicle owners in India, particularly those driving older vehicles – cars, buses or trucks are looking at a costlier future. The government is tightening rules on old vehicles, which, in practical terms, means higher Registration Certificate (RC) renewals and higher fees for fitness tests. Ownership and maintenance of over-age vehicles will ultimately be more expensive.
What Are the New Changes?
Overall, the proposed changes have two major cost increases for older vehicles:
1. RC Renewal Charges
- Renewing the RC has already increased in cost.
- Vehicle owners renewing their RC at the end of the 15 year period will now pay a high fee than previously.
2. Fitness Test Fees
- Every time a private car older than 20 years takes the fitness test, they will have to pay ₹2,000
- Mandatory testing for medium and heavy commercial vehicles (buses, lorries, trucks) over 15 years old will be ₹25,000 for the fitness testing.
- New slabs for vehicles over 10, 13, 15 and 20 year will likely mean fitness tests are undertaken more often and at a higher cost.
3. More Strict Fitness Testing
- Instead of a quick visual inspection of an old vehicle, the fitness testing is likely to involve a technical fitness test to be certified.
- The tests could include testing engine condition, braking efficiency, emissions and safety.
Why Has the Government Introduced These Hikes?
The measures may seem severe, but are being instituted for reasons specific to:
- Road Safety – Older vehicles are likely to have worn out parts, out of date safety technology and pose safety risks. More frequent and stricter testing will ensure vehicles are not a danger to other road users.
- Pollution – Vehicles in excess of 15 – 20 years of age usually emit more smoke and waste harmful gases. By increasing costs of ownership, the Province encourages owners to adopt a cleaner, more fuel-efficient, or even electric vehicle.
- Reducing Over-aged Vehicles on Roads – There are many private and commercial owners who continue to operate over-aged vehicles. Higher costs allow less owners to be able to maintain them.
- Standardized Testing – Firstly, most fitness tests take place with a visual inspection usually at a local RTO. Then to standardized structured inclusive automated testing that could provide a greater consistency with less opportunity for leniency and corruption.
Who Will Feel the Impact the Most?
- Individual Car Owners – Those with vehicles more than 20 years old now have an extreme recurring cost to get fitness certification. This will burden vintage and sentimental car owners the most.
- Commercial Vehicle Owners – Trucks, buses, and heavy vehicles more than 15 years old account for a significant portion of India’s transport network. The new larger fitness test fees could potentially raise the operating costs for transporters.
- Rural/Small Town Owners – In small towns and villages, there are people that will also still run old cars and jeeps for decades. These owners will probably have the hardest time financially coping with the additional costs.
What’s Still Unclear
- The proposals are now in draft form, meaning the end details could change.
- The fee charging structure for vehicles crossing 10, 13, 15 or 20 years is also not yet settled.
- Rollout could also vary across states and some RTOs may take time to have stricter testing infrastructure.
What Will Be the Impact on Vehicle Owners?
- Increased Maintenance Costs – Owners will be incurring additional costs related to obtaining renewals of RCs, and obtaining fitness certificates.
- Scrapping and Resale Pressure – There may be a jump in owners scrapping or selling cars once they are 15-20 years old.
- Increased Commercial Transport – As the upkeep of trucks and buses becomes more expensive to keep on the road, transport operations costs for goods and passengers may subsequently increase, which would flow through indirectly to consumers.
- Increased Move towards New Vehicles – As the costs linked to older vehicles rises, there may be an increased pace of movement towards new vehicles, which have fuel and efficiency and range and electric by the nature of the technology.
- Increased Growth of Auto Services – Garages or sales, checking emissions centres or authorized testing facilities may see an increased demand for services associated with roadworthy, as norms tighten and effect service mechanisms.
What Can Vehicle Owners Do?
- Check Your Vehicle Age – If your vehicle is approaching the 15- or 20-year mark, start thinking about costs in advance.
- Maintain Your Vehicle – Regular maintenance and service will help improve your odds of passing technical fitness assessments.
- Review RTO Notices for Potential Relief – Because these are draft rules, perhaps there are grace periods or reduced fees for certain categories in the final notification.
- Consider Replacement – In some instances purchasing a new vehicle may be cheaper than maintaining an old vehicle.
- Investigate Potential Scrappage Incentives – The government scrappage initiative may provide some benefits to giving away your old vehicle which would help offset costs.
Also Check: Easy Steps to Apply Fancy Number Plate for Your Car in India
Broader Impact on the Auto Sector
- Demand for new cars, specifically electric and hybrid vehicles may increase.
- Stricter requirements may reduce pollution in urban areas and lead to cleaner air.
- Increased standards may have an impact on safety standards on Indian roads with fewer dangerous, older cars on the road.
- Levying costs on transport companies may lead directly to increased costs being passed on to consumers, e.g., slightly higher freight and ticket prices.
Conclusion
The new guidelines represent a major change in how India regulates its old vehicles, and while they might seem like a burden at first glance, their benefits will be aimed at ensuring road safety and protecting the environment in the long run. However, if you own a car, bus, or truck that is 15-20 years old, it may be time to seriously consider whether it is worthwhile to keep the old vehicle with the rising costs.
They definitely denote the government’s drive toward a cleaner, safer, and more productive transport system and for owners, information and a little foresight will provide the best chance of coming through this period of change with the least amount of hassle.
