Car Scrappage Policy India 2025 – Who Needs to Scrap Their Car

If you own an older vehicle in India, it’s time to pay attention. The Car Scrappage Policy is tightening its grip in 2025, and many vehicle owners will be affected. Whether it’s a personal car or a commercial vehicle, the rules & eligibility 2025 could mean your vehicle must be scrapped soon.

Let’s break down everything you need to know—from who is affected to how you can benefit.

Car Scrappage Policy India 2025 – Who Needs to Scrap Their Car

What is the Car Scrappage Policy?

The Car Scrappage Policy is a government initiative designed to phase out old, polluting, and unsafe vehicles from Indian roads.

Key Objectives

  • Curb air pollution caused by older vehicles

  • Encourage the use of fuel-efficient and safe vehicles

  • Recycle and recover useful materials

  • Boost demand for newer, eco-friendly vehicles

Rules & Eligibility 2025 – Who Must Scrap Their Vehicle?

The policy applies to both private and commercial vehicles that cross specific age limits or fail fitness assessments.

Vehicle Scrapping Criteria

Vehicle Type Age Limit Scrapping Condition
Private Vehicles Over 20 years Must pass fitness test or be scrapped
Commercial Vehicles Over 15 years Must pass test or face mandatory scrapping
Government Vehicles Over 15 years Automatically scrapped (from April 2023)
End-of-Life Vehicles Any age (if declared unfit) Must be scrapped if unfit or deregistered

Vehicles that fail the Automated Fitness Test will be marked unfit and cannot be re-registered.

How to Know If Your Vehicle Needs to Be Scrapped

Here’s how to determine if your car falls under the mandatory scrappage category:

  • Your private car is over 20 years old

  • Your commercial vehicle is over 15 years old

  • Your vehicle has failed the official fitness test

  • It is labeled an End-of-Life Vehicle (ELV) by the RTO

If any of the above applies, the vehicle must be scrapped under the Car Scrappage Policy guidelines.

Benefits of Voluntary Vehicle Scrapping

There are several perks for vehicle owners who voluntarily choose to scrap their old cars:

  • 5% discount on the purchase of a new vehicle

  • Waiver of registration charges for new car

  • Scrap value of 4–6% of the ex-showroom price

  • Road tax rebate (up to 25% for personal, 15% for commercial vehicles)

These incentives aim to ease the transition and encourage people to adopt cleaner vehicles.

Where to Scrap Your Vehicle

To scrap your vehicle officially, you’ll need to visit a Registered Vehicle Scrapping Facility (RVSF).

Steps Involved

  • Locate a government-approved scrapping center

  • Submit original documents like RC, PAN, and Aadhaar

  • Receive a Vehicle Scrapping Certificate

  • Use this certificate to claim benefits on a new car purchase

What Happens After Your Car is Scrapped?

Once scrapped, the vehicle is dismantled in an eco-friendly manner:

  • Hazardous fluids are safely extracted

  • Recyclable metals and parts are processed

  • The vehicle’s registration number is deregistered in the RTO system

Summary Table: Scrappage Policy 2025 Eligibility

Criteria Requirement
Private Vehicle Age Above 20 years
Commercial Vehicle Age Above 15 years
Fitness Certificate Mandatory for continued use
Re-registration After Failure Not permitted without passing test
Scrapping Location RVSF – Registered Facility Only

FAQs

1. Do I have to scrap my car if it’s more than 20 years old?

Only if it fails the automated fitness test. If it passes, you may continue using it, but you’ll need to renew registration and comply with local emissions norms.

2. What is an End-of-Life Vehicle (ELV)?

An ELV is a vehicle that is unfit for road use due to age, failed fitness tests, or damage. These vehicles must be scrapped under the Car Scrappage Policy.

3. Will I receive any compensation for scrapping?

Yes, you can get a scrap value (usually 4–6% of the vehicle’s ex-showroom price) and a 5% discount when purchasing a new car using the scrapping certificate.

4. Can I transfer my old car to another state instead of scrapping?

No, transferring an unfit or ELV vehicle to another state is not allowed under the rules & eligibility 2025. Scrapping is mandatory if the vehicle is deemed unfit.

Final Thoughts

The Car Scrappage Policy aims to modernize India’s vehicle fleet, reduce emissions, and boost road safety. With the rules & eligibility 2025 coming into force, now is the right time to check your vehicle’s status. Scrapping might not only be mandatory—it could be your ticket to cleaner, cheaper, and more efficient driving.

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