The Car Scrappage Policy India has officially come into effect in 2025, introducing a comprehensive framework for phasing out old and polluting vehicles. The Ministry of Road Transport and Highways (MoRTH) has implemented this policy to improve road safety, reduce vehicular pollution, and promote green mobility. As per the revised car policy India, all private vehicles older than 20 years and commercial vehicles older than 15 years must undergo a mandatory fitness test.
This bold move signals a shift in India’s transportation priorities, where unfit and polluting vehicles will no longer be tolerated. Car owners are encouraged to participate in this policy by voluntarily scrapping their old vehicles and availing benefits under the government’s incentive scheme.
Key Provisions of the Scrappage Policy 2025
The Car Scrappage Policy India lays out clear eligibility, process, and reward systems. Below are the highlights of the current 2025 rules:
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Vehicles older than the prescribed age must pass an Automated Fitness Test
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Failing vehicles will be deregistered and marked for scrapping
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Owners will receive a scrappage certificate redeemable for discounts
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Up to 25% road tax rebate for personal vehicle replacement
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Up to 15% rebate on new vehicle purchase against scrappage certificate
The vehicle scrap process is now fully digitized and connected through designated scrapping centres authorized by the government. Vehicles unfit for use will be permanently removed from the registration database.
How the New Car Policy India Affects Owners
For private vehicle owners, the car policy India introduces both challenges and opportunities. While some may be forced to part ways with their aging cars, the incentives offered under the Car Scrappage Policy India help ease the transition. Here’s what owners can expect:
| Vehicle Age | Action Required | Incentive Offered |
|---|---|---|
| 20+ Years (Private) | Mandatory Fitness Test or Scrapping | Up to 25% tax rebate, 5% discount |
| 15+ Years (Commercial) | Fitness test required, or deregistration | Scrappage certificate & 15% rebate |
| Government Vehicles | Auto-deregistration after 15 years | No resale allowed, only scrapping |
The vehicle scrap initiative also includes free deregistration and scrapping services in some states, especially for lower-income groups or single-vehicle households.
Environmental and Economic Benefits of the Policy
The Car Scrappage Policy India is more than just a vehicle regulation—it’s a nationwide push for cleaner air and better fuel efficiency. Older vehicles, especially diesel-powered ones, contribute significantly to urban pollution. This policy helps reduce:
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CO2 and particulate emissions
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Fuel consumption by replacing with fuel-efficient models
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Traffic risk caused by mechanically unsafe old vehicles
Additionally, the policy is expected to revive the auto industry by boosting demand for new vehicles. Combined with EV subsidies, the car policy India creates a strong incentive to upgrade to safer, greener alternatives.
Step-by-Step Process to Scrap Your Vehicle
Owners looking to benefit from the Car Scrappage Policy India can follow these steps:
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Visit the nearest authorized vehicle scrapping centre
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Schedule an inspection and hand over the vehicle
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Submit RC, ID proof, and consent form
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Receive vehicle scrap certificate and digital confirmation
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Redeem the certificate while buying a new car
Most centers now offer digital tracking, doorstep pickup, and real-time processing, making the entire process seamless and transparent.
FAQs
What is the Car Scrappage Policy India?
The Car Scrappage Policy India is a new national initiative requiring old, unfit vehicles to be scrapped after failing fitness tests, in exchange for tax rebates and discounts.
Which vehicles are covered under the car policy India?
All personal vehicles over 20 years old and commercial vehicles over 15 years old fall under the car policy India regulations in 2025.
What is the benefit of scrapping my old vehicle?
Under the vehicle scrap system, owners get a scrappage certificate that offers up to 25% road tax rebate and discounts on new vehicle purchases.
Is scrapping mandatory for all old vehicles?
Yes, any vehicle that fails the automated fitness test under the Car Scrappage Policy India must be deregistered and scrapped. Renewal is not allowed.
Where can I scrap my vehicle legally in 2025?
Only authorized centres approved under the vehicle scrap framework can process legal scrappage, ensuring environmental safety and data security.
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