India’s Vehicle Scrappage Policy 2025 is a bold step toward tackling rising vehicular pollution, improving road safety, and boosting the automobile sector. But what does it mean for vehicle owners? Who exactly should scrap their vehicle, and what benefits can you expect in return? Here’s a detailed breakdown of everything you need to know.
What Is the Vehicle Scrappage Policy?
The Vehicle Scrappage Policy, first announced in 2021 and further reinforced in 2025, aims to phase out old, unfit vehicles and encourage the purchase of newer, greener alternatives. The policy targets both personal and commercial vehicles that have reached the end of their useful life.
For private vehicles, the policy applies to those older than 15 years, while for commercial vehicles, the threshold is 10 years. However, age isn’t the only factor. A vehicle must also pass a fitness test at designated Automated Testing Stations (ATS). If it fails, it will be deemed unfit and recommended for scrapping.
Who Should Scrap Their Vehicle?
Not every old vehicle needs to be scrapped. Here’s who should seriously consider it:
1. Owners of Vehicles That Fail the Fitness Test
Vehicles that do not meet emission and safety standards during the fitness test must be deregistered and scrapped.
2. Owners of End-of-Life Vehicles (ELVs)
Any vehicle that has crossed the age limit (15 years for private, 10 years for commercial) and is no longer economically viable to maintain or repair should be scrapped.
3. Fleet Operators with Aging Inventory
Transport companies and fleet operators with aging vehicles can benefit from scrapping older models and investing in new fuel-efficient or electric vehicles.
4. Environmentally Conscious Vehicle Owners
Even if a vehicle is still functional, owners who want to reduce their carbon footprint and contribute to cleaner air may voluntarily choose to scrap their old vehicles.
Benefits of Vehicle Scrapping
There are tangible and direct incentives for those who choose to scrap their vehicles under this policy:
1. Monetary Incentives
Scrapping your old vehicle can earn you 4-6% of the vehicle’s ex-showroom price as a scrappage value from the authorized scrapping center.
2. Rebates on New Vehicle Registration
You may receive up to 25% rebate on road tax and waiver of registration fees when you purchase a new vehicle after scrapping the old one.
3. Discounts from Manufacturers
Automobile manufacturers are encouraged to offer 5% discounts on new vehicle purchases against a valid scrapping certificate.
4. Lower Maintenance and Fuel Costs
New vehicles tend to be more fuel-efficient and require less maintenance. This means long-term savings for vehicle owners.
5. Environmental Benefits
Scrapping old vehicles helps reduce air pollution, greenhouse gas emissions, and noise levels, promoting a healthier environment.
Registration and Benefits Process
Here’s how you can register your vehicle for scrapping and claim your benefits:
- Visit an Authorized Scrapping Center: Only registered Vehicle Scrapping Facilities (RVSFs) can process ELVs.
- Provide Documentation: Submit RC, identity proof, and bank details.
- Get a Scrapping Certificate: Once scrapped, you’ll receive a digitally signed certificate.
- Redeem Benefits: Use this certificate to claim tax rebates, registration fee waivers, and OEM discounts.
Long-Term Impact of the Policy
The Vehicle Scrappage Policy India 2025 is expected to:
- Reduce India’s dependence on crude oil.
- Decrease road accidents by eliminating unsafe vehicles.
- Stimulate demand in the auto industry.
- Boost recycling industries and create green jobs.
Frequently Asked Questions (FAQs)
Q1. Is vehicle scrapping mandatory under the 2025 policy?
No, but it becomes compulsory if your vehicle fails the fitness test or crosses the prescribed age limit without renewal.
Q2. Where can I scrap my vehicle?
You must visit a Registered Vehicle Scrapping Facility (RVSF) authorized by the government.
Q3. What if my vehicle passes the fitness test after 15 years?
You can continue to use it, but you may face higher green tax rates and stricter emission compliance.
Q4. Can I scrap my vehicle voluntarily before 15 years?
Yes, voluntary scrapping is allowed and encouraged with similar benefits.
Q5. How long is the scrapping certificate valid?
Typically valid for one year from the date of issue, during which you can use it to avail various incentives.
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