Supercar Prices Fall By Over A Crore In Mumbai!

If you've spotted a swanky ride in Mumbai, chances are the number plate read anything but MH. The usual alternatives are Puducherry (PY) that levies a flat Rs 55,000 registration charge for vehicles that cost above Rs 20 lakh, or Dadra and Nagar Haveli (DN) / Jharkhand (JH) that levy a 3 per cent road tax on the ex-showroom value of the car. That's purely because Mumbai levied 24.5 per cent in terms of taxes (20 per cent road tax and 4.5 per cent Octroi), which meant registering a few exotic cars in the city cost as much as a 2BHK apartment!

With the recent crackdown on owners for 'evading' road tax by registering cars out of state, prospective buyers would often shelve plans altogether. But, with the new road tax structure that caps the maximum permissible amount at Rs 20 lakh, on-road prices for ultra-luxurious cars and supercars have taken a massive drop. 

Here's an example. Let's consider Lamborghini's flagship, the Aventador S that starts at Rs 5.01 Crore. 

Earlier tax structure:

With the Rs 20 lakh cap in place:

Total savings amount to Rs 1,02,74,500. Yep. You read that right. Owning an Aventador S in Mumbai has become cheaper by a smidge over Rs 1 crore! Do note that we've left the insurance cost out of the equation which has a negligible 3 per cent rise. But, just for reference, a Rs 10 lakh insurance premium for the Aventador will now cost Rs 10.3 lakh. The Rs 30k rise in insurance is pocket change compared to the savings in terms of road tax and registration costs.

Here are some more examples for reference -

Needless to mention other manufacturers such as Ferrari, Aston Martin, and Porsche also stand to benefit from the new tax structure.

Like they say, the more you spend, the more you save!