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What is On Road Price and Ex-Showroom Price?

What is On Road Price and Ex-Showroom Price?

Buying an automobile is a major investment that comes with its fair share of questions. One of the most common queries among potential buyers is: "What is on road price?" And "what is ex-showroom price?"

To make things easier, this post provides a comprehensive guide to everything that customers need to know. Read further to know "what is on road price?" And "what is ex-showroom price?" and the method to calculate the on-road price of their dream vehicle.

What is On Road and Ex-Showroom Price

Customers looking to purchase a vehicle will almost certainly have two questions: what is ex-showroom price and what is on road price? While they may sound similar, they are quite different, and understanding what is on road prices and what is ex-showroom price can help make better decisions when buying a vehicle.

What is Ex-Showroom Price

The ex-showroom price of a vehicle is the manufacturer's listed price. It comprises the vehicle's base price but excludes insurance, registration, tax, and any other connected charges. This is the sum that customers must pay when purchasing a vehicle from a dealership. The manufacturer usually determines the ex-showroom price, which can differ from state to state depending on taxes and other considerations.

What is On Road Price of Car

The on road price is what customers will end up paying for a car, which includes all taxes, registration fees, and any associated costs. This is sometimes referred to as the "ex-factory" price since it takes into account all necessary costs incurred in taking ownership of an automobile. It also accounts for insurance premiums, handling charges, dealer incentives, and other such factors. In most parts of India, dealers will usually quote an "on road price" when selling cars to customers.

Knowing what is on road price can be beneficial for several reasons.

  1. First off, it gives customers an accurate estimate of how much money they’ll need to save up for their dream vehicle before heading out to buy it. 
  2. In addition, since this number also takes into account additional charges imposed by local authorities like road tax and registration fees, it helps ensure that customers don’t end up paying more than what was initially expected after factoring in these extra expenses.
  3. Last but not least, understanding the on-road price also helps confirm whether or not customers can afford the said vehicle in the long run based on its total cost rather than just its ex-showroom price tag alone.

Difference between Ex-Showroom Price and On Road Price

The lies primarily in the additional costs that are included in the on road price. These additional costs include:

·       Registration Charges: These are applicable in every state and are levied according to the vehicle identification number (VIN).

·       Insurance Premiums: This covers losses caused by vehicle theft or accidents and varies by state based on local regulations.

·       Handling Charges: These are additional fees levied by dealerships for services like test drives, delivery charges, etc.

·       Value Added Tax (VAT): This tax varies across states but must be paid before taking delivery of the vehicle.

How is a vehicle's road price determined?

To calculate an accurate on road price for any vehicle in India, there are certain steps that customers need to follow:

  1. Calculate registration fees: This depends on your vehicle's age and the location where it is registered.
  2. Calculate insurance premiums: Customers can get an online quote based on the make and model of their vehicle from various insurance providers.
  3. Calculate handling charges: These depend on dealership-specific rates and offers available at the time of purchase.
  4. Calculate value-added tax (VAT): This varies from state to state, so customers may have to contact local authorities for the exact rates applicable in their area.
  5. Finally, adding up all these components arrives at an approximate on-road price for the vehicle.


Shopping for a vehicle can be a complicated process. From understanding the difference between what is ex-showroom price and on road price, to calculating the cost of the vehicle including taxes, there are many factors to consider. Understanding the difference between ex-showroom price and on road price can help customers make a smarter decision when buying a new vehicle.

By calculating the exact amount payable while buying, including taxes and other associated costs, customers can make sure that they don’t overspend while getting behind the wheel of their dream vehicle! Tata Capital provides vehicle loan with flexible financing options so that customers can easily budget for their next purchase. Their range of products can be checked out here.

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