CBU motorcycles in Maharashtra to attract higher RTO charges

Premium motorcycle buyers in Maharashtra might soon have to shell out extra cash owing to a proposed revision in RTO registration charges. The Maharashtra Transport department is planning to increase the RTO registration charges for CBU (completely built unit) motorcycles from the existing rate of 7 per cent to 20 per cent.

This increase in registration charges for CBU motorcycles was supposed to come into force from April 1, though the transport department has delayed sending out the notification to dealers. This increase in registration charge will be directly reflected on the on-road price of the motorcycle and is to be borne by the customer.

Such a move is usually aimed at encouraging manufacturers to commence CKD (completely knocked down) operations in the country and increase the localisation in their products. However, considering that this hike in charges is applicable only in Maharashtra, it is unlikely to result in a radical change in any manufacturer’s operations. 

While some motorcycle manufacturers like Honda, Triumph and Kawasaki are waiting for the official notification to be released, others like Ducati are playing it safe by charging customers according to the new rate. In their defence, Ducati is saying that this step is to safeguard them from being burdened with the additional cost which is supposed to be borne by the customers. While Ducati has already started charging customer 20 per cent RTO registration charge for its motorcycles, the surplus amount is returned to the customer as soon as the registration process is complete and the RTO receipt is generated.

To put things into perspective, once this rule is passed, a customer planning to buy a Ducati Scrambler will have to shell out almost an additional Rs 1.5 lakh. So if you are planning to buy a premium bike anytime soon, we suggest you hurry and get your dream bike before the transport department releases the official notification.