10 Cheapest States to Buy a Car in India in 2025

Chintan Mehta

12 May 2025, 02:10 PM

24.4K

Remember that car prices in India will be significantly different depending on the state where you register your vehicle when you get one in 2025. The factors included in the total on-road price are road tax, registration fees, insurance and state specific charges that enhance the total amount over and above the showroom price.

The on-road price includes showroom (pre-GST) which is consistent in the country and includes GST. Nonetheless, changes in the road tax, registration charges, and insurance levies imposed by each state result in drastic differences in the on-road cost for cars.

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Himachal Pradesh

In Indian states, the cost of owning a car is the lowest in Himachal Pradesh. Himachal Pradesh is a leader with comparatively low road tax – 2.5 percent for cars up to 1000cc and 3 percent for cars above that.

Puducherry

And in the more budget conscious states, Pondicherry (commonly known as Puducherry) owns a car. Road tax rates in this Union Territory are between 6 and 9 per cent, and an on-road Hyundai Creta costs about ₹10.87 lakh. As a reason for its popularity among potential buyers from neighboring states, the fact that it has easy-going tax conditions and inexpensive registration fees has contributed to the popularity of Puducherry.

Chandigarh

Chandigarh is one of the most accessible budget-friendly places for owning a car; it gives complete road tax exemption to persons with disabilities and registered welfare workers. For other private cars, the tax rate has been a constant 6 percent for cars that cost less than ₹20 lakh, while for those that are more expensive, the tax is 8 percent. In Chandigarh, it is approximately ₹11.15 lakh to own a Hyundai Creta on the road.

Assam

Buying a car in Assam is comparatively cheaper compared to other states. Although the state charges installment road tax based on a vehicle’s price and engine specs at a rate of 5-12%, lower prices have made the state a hot option for buyers. As an illustration a Hyundai Creta on road in Assam is usually about ₹11.25 lakh.

Gujarat

The state of Gujarat has 6 percent road tax for private vehicles, simplest and predictable. On the road, the cost of a Hyundai Creta in Gujarat is nearly ₹11.40 lakh, making it affordable and purchase-friendly.

Punjab

In Punjab, the road tax comprises 8 percent plus 1 percent social security cess for the total of 9 percent. This keeps car ownership affordable, and Hyundai Creta roaming the roads at a cost of approximately ₹11.63 lakh.

Jharkhand

The tax rate in Jharkhand depends on the car’s value and rises with a 6 percent tax on cars up to ₹15 lakh and a 9 percent rate for more expensive versions. Keeping in view the Creta which has fallen in a suitable tax bracket, mid-range buyers can look forward to a price of ₹11.64 lakh on-road.

Jammu & Kashmir

The rate of road tax in Jammu & Kashmir is constant at 9 percent irrespective of the cost of one’s vehicle thus it is clear and to the point. The retail price of the Creta is approximately ₹11.58 lakh in this state.

Haryana

The road tax rates in Haryana are graduated; those on cars costing less are charged 5 percent, while those on costly cars are charged at 10 percent. Hyundai Creta on the road in Haryana, runs around ₹11.68 lakh which is much lesser than what you will be paying in some large cities.

Uttarakhand

But, Uttarakhand imposes a road tax up to 8 to 10 percent depending on the worth of the car and certain conditions. Though a bit costlier than the rates in the close-by states, with the Creta of Hyundai on the road costing around ₹11.87 lakh, it is still reasonable.

In contrast, Karnataka has road taxes as high as 18 percent, significantly increasing car ownership costs. In examining a purchase, buyers should keep in mind the car’s price as well as the fluctuating state taxes and fees.

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10 Cheapest States to Buy a Car in India in 2025

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