The RTO (Regional Transport Office) is the state government office that registers motor vehicles, issues registration certificates (RC) and number plates, collects road tax, and issues driving licences under the Motor Vehicles Act, 1988. Every new car in India must be registered with an RTO before it can legally be driven on public roads.
How it works when you buy a new car
You almost never visit the RTO yourself. The dealer registers the car on your behalf — usually through the central VAHAN portal — pays the road tax and registration fee out of your on-road price, and hands you the RC (now typically a smart card or digital record on DigiLocker). The RTO code appears in your number plate: DL for Delhi, MH-12 for Pune, KA-01 for Bengaluru and so on. If the car is financed, the lender's hypothecation is also noted on the RC at this stage.
Why it matters when buying
RTO charges are a real chunk of your bill: the registration fee itself is small (a few hundred to a couple of thousand rupees), but the road tax the RTO collects is 4–20% of the ex-showroom price depending on your state — the single biggest reason the same car costs different amounts in different cities. See our on-road price explainer for the full breakup.
Watch for
Verify that the RC shows your name, address and the correct variant and chassis number. If you relocate to another state for more than a year, you must re-register the car there and can claim a road-tax refund from the original state — a slow but legitimate process.