A Trade Certificate for Automobile Manufacturers is an official document given by the Regional Transport Office, which permits vehicle manufacturers to use, move, or test vehicles that are not registered. This is necessary in cases of testing new designs, display, testing, transportation, or dispatching such vehicles to dealerships.
Under Section 39 of the “Motor Vehicles Act”, 1988 and Rules 33 and 35 of the Central Motor Vehicles Rules, 1989, it is mandatory for every automobile manufacturer to obtain a valid Trade Certificate before using any unregistered vehicle for business purposes.
A Trade Certificate for Automobile Manufacturers works like a “temporary” registration and is required for manufacturers to legally drive unregistered vehicles on public roads. It helps them follow the rules, avoid big fines, move vehicles between states, and also helps the government track the activities of vehicles for monitoring and approval processes in general.
At Professional Utilities, we help automobile manufacturers in "obtaining" and "renewing" their Trade Certificates through the "VAHAN" portal for full compliance with RTO and CMVR standards.
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A Trade Certificate for automobile manufacturers is an official document that connects the making of a vehicle to when it's officially registered. It permits the circulation and testing of the vehicle while it is in the possession of a manufacturer and before its registration for "sale" or "use" by the public.
Whereas permanent registration covers the owners of vehicles, automobile manufacturers use a Trade Certificate prior to registration to allow the lawful testing, inspection, and transportation of vehicles.
Trade Certificates, as per Rule 35 of the CMVR, are now issued in digital form, using Form 17 through the VAHAN portal, replacing earlier manual formats.
A Trade Certificate for Automobile Manufacturers is a statutory clearance under Section 39 of the Motor Vehicles Act, 1988, and Rules 33 and 35 of the CMVR, 1989. It gives permission to automobile manufacturers to legally test, use, or convey unregistered vehicles for certain operations like:
This certificate ensures all unregistered vehicles used by manufacturers are traceable, compliant, and authorised.
This certificate ensures all unregistered vehicles used by manufacturers are traceable, compliant, and authorised. Without a valid Trade Certificate, operating unregistered vehicles on public roads is a legal offence and can lead to “penalties”, “suspension”, or “cancellation”.
To apply for a Trade Certificate, manufacturers must submit the following verified documents to the RTO through the VAHAN portal:
(Note: A manufacturer does not require a dealership authorisation certificate—Form 16A—which applies only to dealers.)
The process of obtaining a Trade Certificate for Manufacturers is conducted digitally through the VAHAN portal, under Rule 35 of the Central Motor Vehicles Rules, 1989 and G.S.R. 703(E).
Collect all required documents, including Form 16, incorporation proof, GST certificate, prototype/type-approval letter, and authorised signatory details.
Log in to the VAHAN portal, select the manufacturer category, upload documents, and submit Form 16 along with the prescribed fee.
The RTO verifies business details and may conduct a physical or online inspection of the manufacturing premises if required.
Pay the applicable fee as per Rule 81 of the CMVR, 1989, and upload the digital receipt on VAHAN.
Once approved or if no action is taken within 30 days, as per Rule 35(2) the application is approved.
The RTO issues a digital Trade Certificate (Form 17), which can be downloaded directly from the VAHAN portal.
As per Rule 37 of the CMVR and MoRTH Notification G.S.R. 703(E) (effective 1 November 2022), a Trade Certificate for manufacturers is valid for five (5) years from the date of issue or renewal.
To renew, manufacturers must submit a fresh Form 16 along with updated business documents and applicable fee before expiry.
If the RTO does not act within 30 days of the renewal application, it is deemed approved under Rule 35(2).
The renewed certificate is issued digitally in Form 17, ensuring continued authorisation to test and transport unregistered vehicles.
The fees prescribed under Rule 81 of the Central Motor Vehicles Rules, 1989, as amended by G.S.R. 703(E) dated 14 September 2022, are as follows:
| Vehicle Category | Fee for Grant/Renewal (per Trade Registration Mark) |
|---|---|
| Motorcycles | ₹ 2,500 |
| Adapted Vehicles | ₹ 500 |
| Other Vehicles (LMV / Commercial / Heavy / Passenger) | ₹ 5,000 |
| Change of Business Location | ₹ 1,000 |
Note: The fee is charged per trade registration mark at the time of issue or renewal. Additional service or portal charges may apply as per state RTO rules.
At Professional Utilities, we help manufacturers with accurate fee submissions and end-to-end support for quick Trade Certificate approvals.
The penalty for not having a Trade Certificate for automobile manufacturers applies when a manufacturer operates or tests unregistered vehicles without RTO authorization, violating Section 39 of the Motor Vehicles Act, 1988 and attracts penalties under Section 192. Such violations can result in fines between ₹2,000 and ₹10,000. In some cases, legal steps like prosecution might also be taken.
The RTO may also “suspend” or “cancel” the Trade Certificate under Rule 44 of the CMVR if misused. These penalties emphasise the importance of maintaining a valid Trade Certificate to ensure all vehicle operations testing, transport, and delivery are lawful and traceable.
A Trade Certificate for Automobile Manufacturers is a key legal requirement that enables easy and lawful handling of unregistered vehicles during production, testing, and delivery.
With the digital VAHAN system introduced under G.S.R. 703(E), the entire process is now faster, transparent, and fully compliant with the Central Motor Vehicles Rules.
Professional Utilities ensures that your manufacturing operations remain compliant, efficient, and penalty-free under the latest MoRTH guidelines.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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A Trade Certificate is an authorisation issued by the RTO under Rule 35 of the CMVR, 1989, allowing automobile manufacturers to use and transport unregistered vehicles for testing, display, and delivery before registration.
Yes. Under Section 39 of the Motor Vehicles Act, 1988, no unregistered vehicle can be driven or moved in a public place without a valid Trade Certificate. It is a compulsory approval for all vehicle manufacturers.
As per Rule 37 of the CMVR, a Trade Certificate remains valid for five years from the date of issue or renewal, as notified by MoRTH through G.S.R. 703(E) effective 1 November 2022.
Manufacturers can apply online through the VAHAN portal by submitting Form 16 with required documents, paying the prescribed fee, and obtaining a digital Trade Certificate (Form 17) issued by the RTO.
Using unregistered vehicles without a Trade Certificate violates Section 39 and 192 of the MV Act, 1988, leading to fines between ₹2,000 and ₹10,000, and possible suspension or cancellation of authorisation under Rule 44 of CMVR.
Yes. Renewal applications can be submitted online through VAHAN using Form 16, along with updated business documents and fee. If the RTO does not act within 30 days, the renewal is deemed approved as per Rule 35(2).
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