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Difference Between Ex-Showroom Price and On-Road Price

  • Author :
  • TATA AIG Team
  • Published on :
  • 31/05/2022

One of the most used sayings of our time has to be ‘time is money’. From the time we are in schools and colleges, we are meticulously taught that time is money. We are told that if we wish to make a lot of money, we need to use our time wisely. Wasting time is like wasting an opportunity. And we all know that the economy we live in is not kind to those who are not wise with their time and opportunities. Thus, it is only natural that many people do not wish to waste their time waiting for public transport.

Therefore, having a vehicle of one’s own, especially a two-wheeler, has become necessary today. Buying a vehicle for oneself is almost like buying time. It is as though we are buying a few crucial moments every day that we would have otherwise wasted waiting for a commute. Thus, buying a vehicle, especially a two-wheeler, is a long-term investment which can help you make more than you have spent on your bike.

If you are budget conscious and are thus, buying a two-wheeler to save time and money, you will want to know everything about a bike before buying it. You might have a budget within which you want a bike which provides you with the best features. But if this is the case, there is something you need to know well in advance. When buying a vehicle, the projected price is not the price you will be paying when taking the vehicle home.

Therefore, if you wish to be prepared overall and not pay more than your budget, you need to know the on-road price and ex-showroom price. Only after understanding the ex-showroom meaning and what on-road price means will you be able to understand the difference between ex-showroom price and on-road price and make a proper choice.

When deciding how much you wish to pay for your two-wheeler, you also need to consider your bike insurance policy. If you are caught driving your bike without valid insurance for 2 wheeler, you will have to pay heavy fines. Today, the government mandates that every two-wheeler owner have long-term insurance for 2 wheeler. So if you are buying a bike insurance policy, ensure that you are buying the right one. You must compare two-wheeler insurance before choosing the right fit for you.

Tata AIG’s two-wheeler insurance may be the right choice for you. We provide you with a customisable, comprehensive bike insurance policy according to your needs and requirements. You can choose what features your insurance for your 2 wheeler should have and pay only for those. And remember, we provide all our policies at an affordable rate while always providing the best service.

With that covered, let us look into ex-showroom prices vs on-road prices.

What is Ex-Showroom Price?

To understand what ex-showroom price is, you need to know ex-showroom meaning. The price at which the primary producers sell their items to dealers is the ex-showroom pricing. The procurement price may or may not reflect the actual price of the goods, discounting taxes and additional expenditures. Dealers typically include state tax as well. The ex-showroom price includes the amount the distributor pays as state tax to the government. Since the implementation of GST, retailers have been required to pay the government a predetermined proportion of the supply cost of GST. As a result, the ex-showroom pricing includes the GST expense.

Ex-showroom pricing varies from location to location. Charges in well-advanced cities like Bangalore or Mumbai may be greater than in isolated rural locations. This price may also contain a small portion of the vendors' profit. This, however, varies from one vendor to the next. Insurance, registration fees, and other fees are not included. Now that we have an idea about the ex-showroom meaning, let us dive into what on-road price means to understand the difference between ex-showroom price and on-road price.

What is On-Road Price?

To understand what on-road price is, you need to know what on-road price means. The overall cost that the customer must give to the seller for the automobile is known as the on-road price. Pricing-related considerations must be made based on this price. It includes insurance, registration, lifelong road tax, and logistical costs.

If you are getting a comprehensive cover for your vehicle, it will be considered at this point. Future mishaps, damages, and other issues must be avoided, and this happens with the help of insurance. Because they must deliver the bike to you, the dealer may include the delivery price.

The on-road price is just the ex-showroom price plus any additional fees to receive the keys to your ideal vehicle. Now that you know about what is on-road price, what is ex-showroom price and the difference between on-road price and ex-showroom price, let us go ahead.

Influences of the On-Road Price

The following factors make a difference to your on-road price. They are:

  • A maintenance package- Your dealer may entice you with an attractive maintenance package that includes getting your bike deep-cleaned, waxed, and polished, among other things, yearly. Remember, only get it if you feel it is necessary.
  • Accessories- Your dealer may not include some essential accessories to your bike so that you can buy them as an add-on. These could include bike handles or seat covers.
  • A longer warranty- You can buy a longer warranty period wherein you can get all your servicing done for free by your dealer, at an additional cost.
  • Transportation costs- If you have your bike delivered to your home, you may have to pay additional transportation costs, plus a handling fee.
  • Insurance- You cannot take your bike on the road without valid bike insurance. But remember, you need not buy it from your dealer and can do it yourself, usually for less, online or offline.
  • Registration fees- Every vehicle must be certified with the Regional Transport Office closest to it. Typically, a vehicle dealership will handle this for you. You will then be issued a licence plate, sans which you will be unable to drive. As a result, this cost is included in the on-road charge.
  • Taxes- Road tax and TDS collected by the dealer are included in the on-road price.

Ex-Showroom Price Vs. On-Road Price

The ex-showroom cost is lower because the on-road price includes various additional costs and components. Furthermore, a bike's ex-showroom price is rarely the final price. The ultimate price includes registration, road tax and your bike insurance policy. All of this combined is your on-road price. Thus, this is the major difference between ex-showroom price and on-road price.


Knowing ex-showroom and on-road prices can be highly beneficial in budgeting when buying a vehicle. Hopefully, you have now understood what they entail. Also, when buying a bike, never forget your bike insurance policy, as, without it, you can face numerous troubles.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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