Vehicle Scrappage Policy 2025: How to Scrap Your Old Car and Get Discounts on a New One
As India drives toward cleaner roads and greener transport, the Vehicle Scrappage Policy 2025 offers a golden pathway for owners of ageing vehicles. If your car is over its prime, this guide walks you through eligibility, the scrapping process, and all the financial incentives available—including scrap value, registration fee waivers, and road tax rebates. Let’s dive into the step-by-step journey to scrapping your car with confidence.
What Is the Vehicle Scrappage Policy 2025?
The Vehicle Scrappage Policy 2025 is a government-backed initiative aimed at removing polluting, unfit vehicles, and promoting the use of safer, fuel-efficient alternatives. Its goals include reducing emissions, creating recycling value, and boosting new-vehicle demand while supporting India’s environmental and economic objectives.
Eligibility Criteria
Age-Based Eligibility
Private Vehicles
Private cars older than 15 years must undergo a mandatory fitness test. Those older than 20 years, especially if they fail the test, must be scrapped.
Commercial Vehicles
The cutoff is lower: vehicles over 10 years old in some zones (especially high-pollution areas) or beyond 15 years elsewhere require fitness testing, and unfit vehicles face scrappage.
Fitness Testing
Vehicles crossing the age threshold must pass an Automated Fitness Test. Those that fail—after two attempts—are deemed “End-of-Life” and must be scrapped.
Optional Voluntary Scrappage
Owners of older vehicles may choose to scrap voluntarily, even if the vehicle passes fitness tests, to avail incentives.
Step-by-Step Guide to Scrapping Your Old Car
Step 1: Determine Eligibility
Check if your vehicle exceeds the age limit (private cars: over 15/20 years; commercial: 10/15 years) and if it must undergo fitness testing.
Step 2: Book a Fitness Test
Visit an Automated Testing Station (ATS)—the only authorized centers for assessment.
Step 3: If the Vehicle Fails
Undergo deregistration and proceed to scrap at a registered facility.
Note: Failing two fitness tests tags the vehicle as “End-of-Life,” mandating scrappage.
Step 4: Visit a Registered Vehicle Scrapping Facility (RVSF)
Only RVSFs—recognized under the Central policy—can process your vehicle legally and issue a scrappage certificate.
Step 5: Submit Documents
Submit your RC, insurance, Aadhaar/PAN, PUC, and fitness test report. The facility inspects your vehicle and proceeds with scrapping.
Step 6: Receive Certificate of Scrappage
The RVSF issues a Scrappage Certificate (Certificate of Deposit)—proof of lawful scrappage.
Step 7: Use Certificate to Claim Benefits
Use this certificate to claim tax rebates, registration waivers, and manufacturer discounts when purchasing a new vehicle.
Benefits of Scrapping Your Vehicle
Scrap Value
Typically estimated at 4–6% of the vehicle’s showroom price.
Registration Fee Waiver
Complete waiver on registration charges for your replacement vehicle.
Road Tax Rebate
For private vehicles: up to 25%. For commercial: around 15%, though this varies by state.
Manufacturer Discounts
Buy your new vehicle at 5% off or more with a valid scrappage certificate.
Fast-Track Process
Recent updates promise deregistration and certification within 7 working days.
Eco and Industry Boost
These incentives support environmental goals, recycling, and job creation in scrappage and auto sectors.
Real World Context & Challenges
Infrastructure Growing
Tata Motors has opened a new RVSF in Kalyani, West Bengal—its third in Eastern India—boosting capacity to dismantle 21,000 vehicles annually.
Voluntary Scrapping Uptake Low in Some Regions
Chandigarh, for instance, scrapped only 3,159 private vehicles over 18 months—even as 50,000 new vehicles were registered. Authorities plan to establish automated testing centres to ensure safety and compliance.
Quick Checklist Before You Scrap
Confirm vehicle age (15/20 years for private, 10/15 for commercial)
Book fitness test at an ATS
If unfit, visit an authorized RVSF
Carry RC, insurance, ID, and PUC documents
Obtain Scrappage Certificate
Use it for tax rebates, registration waiver, and discounts on a new vehicle.
Pros and Cons of Vehicle Scrappage Policy 2025
Pros
1. Encourages removal of old, polluting vehicles from roads, improving air quality.
2. Offers monetary benefits like scrap value, road tax concessions, and registration fee waivers.
3. Helps boost the automobile industry by increasing new vehicle sales.
4. Reduces maintenance and fuel costs compared to running an old vehicle.
5. Creates opportunities in recycling and steel production sectors.
Cons
1. Not all vehicle owners may find the scrap value attractive enough.
2. Rural vehicle owners might face inconvenience due to limited scrapping centers.
3. Sentimental value of vintage or family-owned vehicles may deter scrapping.
4. Initial costs of buying a new vehicle may outweigh benefits for some.
5. Awareness about the process is still low in smaller towns and cities.
Final Words
India’s Vehicle Scrappage Policy 2025 presents a well-structured, incentive-driven roadmap for removing old, polluting vehicles from the road and transitioning you to a safer, more modern one. If your vehicle exceeds age or fails fitness tests, this is the time to act. Follow the steps above, visit authorized centers, and claim your government-backed benefits. You’ll be contributing to cleaner air, stronger automotive ecosystems, and a smarter mobility future—all while saving on your new vehicle purchase. Official website: https://www.nsws.gov.in/portal/scheme/scrappagepolicy
You may also like to read: https://khabarkhabri.com/car-loan-guide-3024/