Is your vehicle over 15 years old? The Indian government’s Vehicle Scrappage Policy 2025 might just be your cue to bid farewell to your ageing car or truck—and get rewarded for it too.
Let’s break down the key updates and what it means for you.
Table of Contents
What Is the India Scrappage Policy 2025?
The India scrappage policy 2025 is part of the government’s mission to reduce air pollution, promote greener transportation, and encourage the use of fuel-efficient vehicles. It mandates that old and polluting vehicles be voluntarily scrapped and taken off the roads.
Objectives of the Policy
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Remove old, unfit vehicles from circulation
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Reduce environmental pollution
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Boost the auto manufacturing and recycling industries
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Encourage use of electric and fuel-efficient vehicles
Key Rules Under the 2025 Vehicle Scrappage Policy
Here’s a quick look at what the updated guidelines include:
Policy Element |
Details |
|---|---|
Age Limit for Private Vehicles |
15 years |
Age Limit for Commercial Vehicles |
10 years |
Fitness Test Requirement |
Mandatory for vehicles over the age limit |
Failure in Fitness Test |
Vehicle deregistration and scrapping recommendation |
Incentives Offered |
Scrap value, road tax rebate, registration fee waiver |
Benefits of Scrapping Your Old Vehicle
Worried about letting go of your trusted ride? Here’s what you gain by opting for old car disposal:
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Monetary benefits: Owners get 4–6% of the vehicle’s showroom value as scrap incentive
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Tax perks: Up to 25% rebate on road tax for new vehicle purchases
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Faster process: Easier vehicle deregistration with digital tracking
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Eco-friendly choice: Reduced emissions and fuel consumption
How to Deregister and Scrap Your Vehicle
If your vehicle is past its prime, here’s how to get started:
Step-by-Step Process
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Fitness Test – Visit an authorized Automated Testing Station (ATS)
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Failure Notice – If unfit, a notice for vehicle deregistration is issued
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Scrapping Application – Apply at a Registered Vehicle Scrapping Facility (RVSF)
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Deregistration and Destruction Certificate – Issued after scrapping
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Claim Incentives – Use certificate to avail new vehicle benefits
Why the Policy Matters
With over 1 crore vehicles nearing the end of their life span in India, the India scrappage policy 2025 is a bold step towards:
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Decongesting Indian roads
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Reducing fuel dependency
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Revitalizing India’s automotive ecosystem
FAQs
Q1: What vehicles are covered under the India scrappage policy 2025?
The policy covers both private and commercial vehicles—15 years and 10 years old respectively.
Q2: Is it mandatory to scrap my old car?
Not exactly. Scrapping is voluntary unless your vehicle fails the automated fitness test.
Q3: Can I reuse my vehicle after it fails the fitness test?
No, once declared unfit, your vehicle will be deregistered and cannot be re-registered for use.
Q4: Where can I scrap my vehicle?
You can scrap it at government-approved Registered Vehicle Scrapping Facilities (RVSFs), now available in major cities.
Final Thoughts
The India scrappage policy 2025 isn’t just about retiring old cars—it’s a visionary move to reshape India’s mobility future. Whether you’re an everyday commuter or a fleet operator, understanding these rules ensures you stay compliant, safe, and environmentally conscious.
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