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Why RTO prices are different for similar bikes???

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  • Why RTO prices are different for similar bikes???

    I've been looking at a few motorcycles as upgrades from my GT - while I'm not really gonna upgrade but was just checking things out. While at it I found a bit startling & surprising thing which I'm not able to get my head around. i.e. How come RTO registration prices are different for similar type of bikes & different by a huge margin for the same state even when prices are quite close.

    Now I'm using BikeWale as my reference here, so incase their data doesn't really match it'll be helpful if you correct it here.

    Eg. one of the best examples is:- Location selected is Mumbai - wherever there was Sub-Area was asked I entered Kandivali(W).

    Bikes Binelli TNT300 Kawasaki Z250
    Ex-Showroom (Mumbai) 3,14,000 3,22,440
    RTO 64,300 30,440
    Insurance 6,918 7,754
    Now both bikes are naked twins yes the binelli is 50cc more but how does one explain the 50% additional cost on RTO. Then in that case the Ninja 300 RTO cost is Rs.35,465! And the R3 RTO price is Rs.38,740 - which is still quite within same range.

    Now comparing 2 cruisers

    Bikes HD 750 Strt HyS Aquilla Pro650
    Ex-Showroom (Mumbai) 5,20,213 5,63,000
    RTO 60,562 83,820
    Insurance 18,800 12,519
    Again, here the RTO price difference doesn't really make much sense even though Aquilla is more expensive. Neither the fact that it's lower in cc than the HD750. So definitely something else is affecting this.

    Bikes Binelli 600i Std Kawasaki Er6N HyS GT650N
    Ex-Showroom (Mumbai) 5,62,000 4,88,665 4,12,000
    RTO 1,17,400 50,287 59,180
    Insurance 12,499 11,705 9,433
    Again here Binelli seems substantially higher than others. Even the HyS GT650 is almost 18% higher which is quite high so to speak. Even again if we say that 600i is a 4cycliner the comparison with CBR650F doesn't really compute. Coz RTO for CBR650F is Rs.81,097 - a mind-numbing 36K less!

    And what will really blow your bearings is that Kawasaki Z800 which is almost 50k higher in price, 150cc higher in CC, has about 18k lower RTO costs!!!

    One consistent trend is Kawasaki has much lower registration costs compared to bikes priced cheaper! Which means that the popular explanation that RTO Cost = "Certain percent of the total cost" is definitely not true. This trend continues on even when you compare Triumphs, Ducatis & the likes.

    Looking at all the different examples, there's definitely things other than "CC", type of Engine, No of Cylinders, type of Bike etc even price factor is negated. So what is it?? Does Euro/ARAI complaint have some role? CKD, CBU etc play a role? Or is it that Companies like Kawasaki (thanks to Bajaj) has negotiated a much cheaper rate for Registrations? and Companies like Binelli certainly have not done it that well - since it's consistently highest?.


    Again I'm not taking about total price of on-road price I'm only discussing difference in "RTO Registration Cost" and nothing else.
    The objective of this thread is simply academic - intellectual masturbation sort of cracking this code of how is it actually calculated which is consistent atleast across a segment.
    Ride your Heart out!!!

    Continental GT - 10,000km Review


    My Rodie'self intro

  • #2
    Re: Why RTO prices are different for similar bikes???

    GBD approved!

    I do think it's CKD, CBU in play. Moreover, trade routes via Thailand are cheaper due to our pact with them. Kawasaki and Yamaha utilize this route.
    Benelli is Italian/Chinese and therefore doesn't enjoy those benefits. So higher tax. That's my understanding in simple words.
    Got a $5 head? Get a $5 helmet.
    Because everyone who passes, isn't a martyr!

    Bullet Service Guide CBR 250R Parts Manual Fz16 service manual - https://drive.google.com/file/d/0B1-...VFQmJzakk/view
    Hero Moto Corp Bikes' Parts RE STD 350 Wiring Diagram (CI) Service Manual - Classic 350/500
    ZMR parts - https://drive.google.com/file/d/0B-U...it?usp=sharing
    P200NS Spares' prices - https://docs.google.com/spreadsheet/...taGd5R2c#gid=0

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    • #3
      Re: Why RTO prices are different for similar bikes???

      Originally posted by Divya Sharan View Post
      GBD approved!

      I do think it's CKD, CBU in play. Moreover, trade routes via Thailand are cheaper due to our pact with them. Kawasaki and Yamaha utilize this route.
      Benelli is Italian/Chinese and therefore doesn't enjoy those benefits. So higher tax. That's my understanding in simple words.
      Hmm...interesting point, bu Trade routes should affect the "Landed Cost of the Bike" i.e. Ex-Showroom price. But then RTO-cost is supposed to be "Registration cost + Road-Tax" right! But there are cases where even a higher Ex-Showroom price has a lower "Registration Cost - Road Tax", How does trade routes define what registration costs need to be applied??? its all a bit confusing.

      .
      Ride your Heart out!!!

      Continental GT - 10,000km Review


      My Rodie'self intro

      Comment


      • #4
        Re: Why RTO prices are different for similar bikes???

        Originally posted by Kaushik Iyer View Post
        Hmm...interesting point, bu Trade routes should affect the "Landed Cost of the Bike" i.e. Ex-Showroom price. But then RTO-cost is supposed to be "Registration cost + Road-Tax" right! But there are cases where even a higher Ex-Showroom price has a lower "Registration Cost - Road Tax", How does trade routes define what registration costs need to be applied??? its all a bit confusing.

        .
        You see, ideally we should be paying taxes on ex-factory price and not ex showroom.
        Ex showroom price = Ex factory price + state tax. Therefore, ex showroom prices differ across cities.

        Now, we again pay the state tax component along with LTT. So, I think there are multiple anomalies with the taxation and most of us do so eyes closed without having any idea of what, how and why.
        Got a $5 head? Get a $5 helmet.
        Because everyone who passes, isn't a martyr!

        Bullet Service Guide CBR 250R Parts Manual Fz16 service manual - https://drive.google.com/file/d/0B1-...VFQmJzakk/view
        Hero Moto Corp Bikes' Parts RE STD 350 Wiring Diagram (CI) Service Manual - Classic 350/500
        ZMR parts - https://drive.google.com/file/d/0B-U...it?usp=sharing
        P200NS Spares' prices - https://docs.google.com/spreadsheet/...taGd5R2c#gid=0

        Comment


        • #5
          Re: Why RTO prices are different for similar bikes???

          So we still don't have a satisfactory answer to the original query

          I have a sub query here.

          These RTO registration charges are subjected to change ?
          Increase or decrease with time ?
          Last edited by dnewguy; 12-20-2016, 03:25 PM.
          You Start Your Life with a Full Pot of Luck and an Empty Pot of Experience, the Object is to Fill the Pot of Experience Before you Empty the Pot of Luck.....!!

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          • #6
            Re: Why RTO prices are different for similar bikes???

            Yes still nothing concrete answer is coming out, offcourse I guess we need to have a bit more discussion on the same.

            I feel GST should solve some bit of confusion on State Tax. But in essence "Registration & Road Tax" should remain the same across the country. Cause we're only "Registering" a Vehicle as "Road Worthy & given an identification - number". but as pointed above we already pay State Tax in the form of Showroom price & further pay Higher/ lower RTO charges.

            So in the light of this information, it makes absolutely no sense buying a Binelli 600i against the CBR 650F OR the Z800 from a cost pov! You can save quite a bit on the registration
            Ride your Heart out!!!

            Continental GT - 10,000km Review


            My Rodie'self intro

            Comment


            • #7
              RTO amount calculation

              Hello fellow Bikers, I had a question buzzing in my mind from a few days. Thought I will reach out to you guys for an answer. I just wanted to understand how the RTO amount is calculated? Is it a fixed percentage? Does it vary on CC? Does it vary on Weight of the bike? Style of the bike (Cruiser, Naked, Sport) has an impact? I was comparing 3 bikes from kawasaki and found weird RTO pricingClick image for larger version

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              • #8
                Re: Why RTO prices are different for similar bikes???

                It mainly depends on the cc of the bike,more cc more cost of registration on the bike.
                It % vary from state to state.
                Like the % of tax in banglore is way higher than in puducherry,so many people get their viechel registered in puducherry just to save the tax.
                This occurs mostly in case of luxury cars and bikes.

                Comment


                • #9
                  Re: Why RTO prices are different for similar bikes???

                  Originally posted by Om1234 View Post
                  It mainly depends on the cc of the bike,more cc more cost of registration on the bike.
                  It % vary from state to state.
                  Like the % of tax in banglore is way higher than in puducherry,so many people get their viechel registered in puducherry just to save the tax.
                  This occurs mostly in case of luxury cars and bikes.

                  All the bikes that I have included in the attachment have same cc and same manufacturer and the price is being checked for the exact same location and there is only 1 dealer in Mumbai.

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