Most Expensive States To Own a Car in India is an expensive affair, with costs varying significantly across states due to factors like road tax, fuel prices, insurance premiums, and maintenance expenses. Karnataka ranks as the most expensive state for car ownership in 2025, primarily due to its high road tax (18%) and steep fuel prices (₹115 per litre).
Maharashtra and Tamil Nadu follow closely, driven by high registration fees and insurance costs. Other states like Andhra Pradesh, Kerala, and Telangana also have considerable expenses due to factors such as weather conditions, congestion, and additional local levies. Understanding these costs can help prospective car buyers make informed decisions.
Top 10 Most Expensive States to Own a Car in India – 2025
| Rank | State | Average On-Road Price (₹ Lakhs) | Road Tax (%) | Fuel Price (₹/Litre – Petrol) | Insurance Cost (₹/Year) | Annual Maintenance Cost (₹) |
|---|---|---|---|---|---|---|
| 1 | Karnataka | ₹10.5 – ₹12.8 | 18% | ₹115 | ₹25,000 | ₹15,000 |
| 2 | Maharashtra | ₹10.2 – ₹12.5 | 14% | ₹114 | ₹23,500 | ₹14,500 |
| 3 | Tamil Nadu | ₹9.8 – ₹12.0 | 13% | ₹113 | ₹22,500 | ₹14,000 |
| 4 | Andhra Pradesh | ₹9.6 – ₹11.8 | 12% | ₹112 | ₹22,000 | ₹13,500 |
| 5 | Kerala | ₹9.5 – ₹11.7 | 11% | ₹110 | ₹21,500 | ₹13,000 |
| 6 | Telangana | ₹9.3 – ₹11.5 | 11% | ₹109 | ₹21,000 | ₹12,800 |
| 7 | Delhi | ₹9.2 – ₹11.3 | 10% | ₹108 | ₹20,500 | ₹12,500 |
| 8 | Gujarat | ₹9.0 – ₹11.0 | 9% | ₹107 | ₹20,000 | ₹12,000 |
| 9 | West Bengal | ₹8.9 – ₹10.9 | 9% | ₹106 | ₹19,500 | ₹11,800 |
| 10 | Rajasthan | ₹8.7 – ₹10.7 | 8% | ₹105 | ₹19,000 | ₹11,500 |
Detailed Analysis of Each State
1. Karnataka – ₹10.5 – ₹12.8 Lakhs
- Why is it Expensive?
- Highest road tax at 18%
- High fuel prices (₹115 per litre of petrol)
- High insurance and maintenance costs
- Additional congestion charges in Bangalore
2. Maharashtra – ₹10.2 – ₹12.5 Lakhs
- Why is it Expensive?
- High road tax (14%)
- Expensive fuel (₹114 per litre of petrol)
- High insurance costs, especially in Mumbai and Pune
3. Tamil Nadu – ₹9.8 – ₹12.0 Lakhs
- Why is it Expensive?
- High road tax (13%)
- Higher vehicle registration fees
- Chennai’s high fuel prices add to the cost
4. Andhra Pradesh – ₹9.6 – ₹11.8 Lakhs
- Why is it Expensive?
- Moderate road tax (12%)
- Above-average fuel prices (₹112 per litre)
- High insurance costs due to frequent cyclonic damage risks
5. Kerala – ₹9.5 – ₹11.7 Lakhs
- Why is it Expensive?
- Road tax at 11%
- Expensive fuel prices at ₹110 per litre
- Annual vehicle fitness tests required
6. Telangana – ₹9.3 – ₹11.5 Lakhs
- Why is it Expensive?
- Road tax at 11%
- High urban congestion in Hyderabad raises maintenance costs
7. Delhi – ₹9.2 – ₹11.3 Lakhs
- Why is it Expensive?
- High insurance premiums due to traffic density
- Environmental taxes on petrol & diesel vehicles
8. Gujarat – ₹9.0 – ₹11.0 Lakhs
- Why is it Expensive?
- Higher insurance costs in Ahmedabad & Surat
- Higher maintenance costs due to extreme weather conditions
9. West Bengal – ₹8.9 – ₹10.9 Lakhs
- Why is it Expensive?
- Road tax at 9%
- Higher insurance costs due to frequent floods
10. Rajasthan – ₹8.7 – ₹10.7 Lakhs
- Why is it Expensive?
- High vehicle registration fees
- Higher maintenance costs due to desert climate
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Conclusion
Most Expensive States To Own a Car in India is a costly affair, with expenses varying widely based on location. Karnataka, Maharashtra, and Tamil Nadu are the most expensive states due to high road taxes, fuel prices, and insurance premiums. If you’re planning to buy a car in 2025, consider these costs before making your decision.
FAQs :-
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Why are some states more expensive for car ownership?
High road tax, fuel prices, insurance premiums, and additional local charges contribute to the cost.
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Which state has the highest road tax?
Karnataka has the highest road tax at 18%.
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Are fuel prices the same across India?
No, fuel prices vary due to state taxes and transportation costs.
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How do insurance costs vary by state?
Higher traffic density, accident rates, and environmental factors influence insurance premiums.
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Can car ownership costs decrease over time?
Possible tax reforms, subsidies on electric vehicles, and fuel price reductions may lower costs in the future.