Big Relief: Centre Extends Exemption Period for Old Vehicles by 5 Years
Big Relief: Centre Extends Exemption Period for Old Vehicles by 5 Years
Vehicle owners get relief as 15-year-old vehicles can now be used up to 20 years with renewed registration, but at higher fees.
The Ministry of Road Transport and Highways has announced a major relief for vehicle owners by extending the exemption period for old vehicles. Cars, bikes, and other vehicles that are 15 years old can now continue running for an additional five years after registration renewal, effectively increasing their lifespan to 20 years. The new rules came into effect from August 20, 2025, along with a revised fee structure.
Key Highlights
- Owners of 15-year-old vehicles can renew registration for 5 more years.
- Maximum vehicle life extended to 20 years.
- New fee structure for renewal is effective from August 20, 2025.
- Fees are exclusive of GST.
New Renewal Fee Structure for 20-Year-Old Vehicles
- Invalid vehicles: ₹100
- Motorcycles: ₹2,000
- Three-wheelers/Quadricycles: ₹5,000
- Light motor vehicles (cars, etc.): ₹10,000
- Imported two-wheelers: ₹20,000
- Imported four-wheelers: ₹80,000
- Other vehicle categories: ₹12,000
Impact on Vehicle Owners
This move comes as a double-edged sword for vehicle owners. On one hand, it provides significant relief by allowing them to legally use their old vehicles for five more years. On the other, the increased renewal fees add an extra financial burden.
Policy Outlook
While the decision benefits vehicle owners, it also aligns with the government’s eco-friendly approach. The high renewal charges are expected to encourage people to opt for newer, less-polluting vehicles, thereby reducing overall emissions and promoting cleaner transport.
With the extension of old vehicle usage and the implementation of higher renewal charges, the government has balanced convenience for vehicle owners with its long-term environmental goals.
