India’s New Vehicle Scrappage Policy 2025 – Who Must Scrap & What You’ll Get in Return

India is entering a new chapter in sustainable transportation with the Vehicle Scrappage Policy 2025. This policy isn’t just about retiring aging vehicles — it’s about giving you better performance, safer roads, and cleaner air. Whether you own an old diesel car or a faithful 20-year-old two-wheeler, this policy is going to impact you. But it’s not all bad news — car scrappage benefits are on the horizon for responsible vehicle owners.

Let’s break down who’s affected, what you’ll get in return, and why this policy is a step toward a greener, more efficient India.

India’s New Vehicle Scrappage Policy 2025 – Who Must Scrap & What You’ll Get in Return

Who Needs to Scrap Their Vehicle?

The Vehicle Scrappage Policy 2025 is designed to remove vehicles that are past their prime and contributing heavily to pollution. Here’s who needs to take note:

Mandatory Scrapping

Vehicle Type Age Limit Scrapping Condition
Government Vehicles 15 years Mandatory scrapping, regardless of condition
Commercial Vehicles 15 years Subject to fitness tests; unfit ones must be scrapped
Private Vehicles 20 years Must pass fitness test; failure leads to scrapping

If your car or bike fails to pass the automated fitness test after the age limit, it’s considered unfit and will need to be scrapped under the policy. This also aligns with the old vehicle ban in some states like Delhi-NCR, where older petrol and diesel vehicles are already restricted.

Car Scrappage Benefits – What’s in It for You?

Now for the good part: the vehicle scrappage policy 2025 doesn’t just take away your old car — it rewards you for making the switch.

Here’s what you get when you scrap your old vehicle:

  • Scrappage Certificate – Official document showing your vehicle has been legally scrapped

  • 5% Discount on the purchase of a new vehicle (from the manufacturer)

  • Waiver on Registration Fee for the replacement vehicle

  • Reduced Road Tax – Up to 25% off for private vehicles and 15% for commercial ones

  • Eco-Friendly Contribution – You help reduce air pollution and congestion

This means your transition to a newer vehicle isn’t just smoother — it’s cheaper. These are some serious vehicle replacement incentives worth considering.

Why India Needs This Policy

Let’s face it: older vehicles contribute disproportionately to urban air pollution. According to government data, vehicles over 15 years old:

  • Emit 10–12 times more pollutants

  • Are less fuel-efficient

  • Have outdated safety standards

The Vehicle Scrappage Policy 2025 is part of India’s broader push to:

  • Curb carbon emissions

  • Promote fuel-efficient, modern vehicles

  • Create a circular economy in the auto sector

  • Boost automobile manufacturing through demand for replacements

How to Scrap Your Vehicle – Step-by-Step

If your vehicle qualifies for scrappage, here’s how to do it:

  1. Locate a Registered Scrapping Facility (RVSF) near you

  2. Submit your vehicle along with original documents

  3. Undergo a pre-scrapping inspection

  4. Get your Scrappage Certificate

  5. Claim your discounts and waivers when buying your new vehicle

Many RVSFs are being set up under public-private partnerships across India, so the process is expected to be smooth and transparent.

Summary Table – Scrappage at a Glance

Criteria Details
Mandatory For 15-year-old govt vehicles, unfit commercial/private ones
Benefits Discounts, tax waivers, registration fee waiver
Fitness Test Requirement Yes, after 15-20 years depending on vehicle type
Scrap Certificate Use Mandatory to avail vehicle replacement benefits
Environment Impact Lower emissions, safer and cleaner roads

FAQs

1. Is scrapping my private car compulsory under the policy?

Not always. If your car is over 20 years old and fails the fitness test, it must be scrapped. Otherwise, you may keep it — but it must pass the fitness test every year.

2. Can I get benefits if I voluntarily scrap my vehicle early?

Yes! Voluntary scrapping also qualifies you for car scrappage benefits, such as purchase discounts and road tax rebates.

3. How do I find an authorized scrapping center?

You can check with your regional transport office (RTO) or visit the official MoRTH website for a list of Registered Vehicle Scrapping Facilities (RVSFs).

4. What if I don’t scrap my unfit vehicle?

Driving an unfit or banned vehicle could lead to heavy fines, impounding, and denial of insurance claims. In some areas, such as Delhi-NCR, the old vehicle ban is already being enforced strictly.

Final Thoughts

The Vehicle Scrappage Policy 2025 is more than a regulation — it’s a wake-up call for all vehicle owners in India. Whether you’re driving a decade-old diesel SUV or a trusty old hatchback, it’s time to assess your ride.

With generous car scrappage benefits, strong environmental goals, and financial incentives, scrapping your old vehicle might just be the smartest move you’ll make in 2025.

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