The on-road price is the total amount a buyer pays to drive a vehicle home in India. It is materially higher than the ex-showroom price quoted in advertising. Banks finance against the ex-showroom or on-road price (varies by lender) at LTVs of 80%–90%.
Components
On-road price = Ex-showroom price
+ RTO / road tax (4%–18% depending on state)
+ Insurance — comprehensive, year 1 (~3%–4% of ex-showroom)
+ TCS — applies to cars > ₹10 lakh ex-showroom (1%)
+ Extended warranty (optional, ~₹15K–₹40K)
+ Fastag, accessories, handling charges
Worked example — Maruti Brezza
Ex-showroom (Delhi): ₹10,69,000. RTO + road tax (~10%): ₹1,07,000. Comprehensive insurance: ₹35,000. TCS (>₹10L): ₹10,690. Fastag + handling: ₹3,000. On-road price ≈ ₹12,24,000.
A typical 80% LTV loan against on-road would be ₹9,79,000. EMI at 9% over 5 years ≈ ₹20,300.