India is moving towards cleaner, safer, and more sustainable roads with the Vehicle Scrappage Policy 2025. This initiative encourages vehicle owners to phase out old, polluting cars and replace them with new, fuel-efficient models. Beyond just being a regulation, the policy is designed to benefit vehicle owners, the automobile industry, and the environment.
What is the Vehicle Scrappage Policy 2025?
The scrap policy India was introduced to systematically remove old, unfit vehicles from the roads. Its purpose is twofold:
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To reduce pollution caused by older vehicles
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To give owners financial incentives for scrapping outdated cars and purchasing modern vehicles
It also introduces old vehicle deregistration, ensuring that cars unfit for use are properly removed from the system, preventing them from being illegally resold or reused.
Eligibility Criteria for Vehicle Scrappage
Not every vehicle falls under this policy. The government has clearly defined which vehicles qualify for scrapping.
| Vehicle Type | Age Limit | Fitness Test Requirement | Condition for Scrapping |
|---|---|---|---|
| Private Vehicles | 20 years or older | Must undergo automated fitness test | If unfit, will be deregistered |
| Commercial Vehicles | 15 years or older | Mandatory annual fitness test | If failed, must be scrapped |
| Government Vehicles | 15 years or older | Automatic scrapping | Applicable across India |
Note: Even if your vehicle is younger but fails the fitness test multiple times, it can still be considered under old vehicle deregistration.
Key Benefits of the Vehicle Scrappage Policy
For Vehicle Owners
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Attractive incentives – Scrap value of the vehicle (4-6% of the ex-showroom price)
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Tax rebates – Road tax concessions up to 25% for private and 15% for commercial vehicles
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Discounts on new vehicles – Manufacturers may offer additional discounts on new purchases
For the Environment
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Reduction in air pollution by phasing out high-emission vehicles
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Lower fuel consumption with modern, efficient vehicles
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Support towards India’s carbon reduction targets
For the Economy
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Boosts the automobile industry by increasing new vehicle sales
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Creates jobs in recycling and scrapping facilities
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Promotes a circular economy by reusing raw materials
How to Apply for Vehicle Scrappage in India 2025
The process to avail benefits under the scrap policy India is streamlined and digital.
Step-by-Step Process
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Locate an authorized scrapping facility – Search for a government-registered Vehicle Scrapping Facility (RVSF)
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Submit vehicle documents – Provide RC (Registration Certificate), ID proof, and bank details
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Vehicle verification – The facility checks the fitness and verifies ownership
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Deregistration of vehicle – Once approved, the vehicle is deregistered under the old vehicle deregistration process
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Receive scrappage certificate – This document is essential to claim tax benefits and discounts on a new vehicle
Why This Policy Matters
The Vehicle Scrappage Policy 2025 is not just a regulation—it’s a transformation. It ensures that India reduces its carbon footprint, keeps its roads safer, and provides a fair incentive to vehicle owners. By embracing this change, you not only benefit personally but also contribute to a cleaner future.
FAQs on Vehicle Scrappage Policy India 2025
Q1. Who is eligible under the Vehicle Scrappage Policy 2025?
Any private vehicle older than 20 years and commercial vehicles older than 15 years are eligible. Government vehicles above 15 years will be mandatorily scrapped.
Q2. What is old vehicle deregistration?
It refers to the official removal of an old or unfit vehicle from the registration database, ensuring it cannot be reused or resold illegally.
Q3. What benefits do I get from scrapping my old vehicle?
Owners receive scrap value, road tax concessions, and discounts on new vehicle purchases.
Q4. How do I apply for scrapping my car in India?
You need to visit an authorized scrapping facility, submit your documents, complete deregistration, and obtain a scrappage certificate.
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