The Car Scrappage Policy 2025 marks a major shift in how India manages end-of-life vehicles. Designed to phase out polluting and unsafe vehicles, this initiative is expected to reshape the automotive ecosystem. By encouraging voluntary scrapping of unfit cars, the policy aims to promote cleaner mobility, reduce road risks, and drive the adoption of modern vehicles. It’s more than just a regulatory change—it’s a strategic push toward sustainable vehicle recycling.
Key Features and Rules of the 2025 Policy
Understanding the structure of the 2025 policy is crucial for every vehicle owner. Here’s what’s been updated:
- Fitness Test Mandate: Private vehicles older than 15 years and commercial ones over 10 years must undergo an automated fitness test. Failure results in de-registration.
- Mandatory Scrapping for Govt Vehicles: All government and PSU-owned vehicles older than 15 years will be scrapped by default, effective from April 2025.
- Green Tax Implementation: Vehicles failing fitness tests or running without certification will attract a Green Tax, increasing annual road tax significantly.
- Deregistration Deadline: If a car fails the fitness test twice, it cannot be re-registered and must be scrapped.
Overview of New Car Scrappage Policy 2025
| Feature | Detail |
|---|---|
| Policy Start | April 1, 2025 |
| Applies To | Private vehicles (15+ years), Commercial vehicles (10+ years) |
| Fitness Test | Mandatory at RTO-approved automated centers |
| Incentives | Tax rebates, discounts on new vehicle purchase |
| Penalties | Green tax, deregistration |
Scrapping Benefits for Car Owners
One of the strong appeals of this policy is the wide range of scrapping benefits offered to vehicle owners. These include:
- Monetary Incentives: Owners can get up to 25% rebate on road tax for new vehicles and a scrap value payment of 4-6% of the vehicle’s showroom price.
- Manufacturer Discounts: Leading auto brands may offer exclusive exchange bonuses for scrapping certificates.
- Fuel and Maintenance Savings: Newer vehicles are more fuel-efficient and require less frequent repairs, easing long-term costs.
- Lower Emissions: Replacing old cars with BS-VI compliant models significantly cuts air pollution.
Impact on Old Car Policy in India
The 2025 update revamps the traditional old car policy in India. While older models were previously allowed on the road with periodic fitness tests, the new system is stricter and tech-driven.
The digitalization of vehicle records and the introduction of automated fitness testing removes human error and corruption. Moreover, increased penalties discourage the use of high-emission vehicles, making scrapping a practical option for aging car owners.
How Vehicle Recycling is Reshaping the Auto Sector
The rise of vehicle recycling isn’t just about disposing of old metal. It’s about building a circular economy. Recycled materials like steel, aluminum, and plastic can be reused in new car manufacturing, reducing reliance on raw material imports.
Authorised Vehicle Scrapping Facilities (AVSFs), certified by the Ministry of Road Transport and Highways (MoRTH), now handle de-pollution and dismantling using eco-safe methods. This not only creates jobs but also opens a new industrial vertical within the green economy.
What Car Owners Should Do Now
If your vehicle is nearing or has crossed the 15-year mark (private) or 10 years (commercial), here’s what you should consider:
- Check your registration date and plan for a fitness test.
- Locate an AVSF near you and understand the scrapping process.
- Explore scrapping benefits from dealerships.
- Monitor updates from MoRTH on state-specific rules or offers.
Taking action now could help avoid last-minute hassles and maximize value.
Conclusion
The Car Scrappage Policy 2025 is more than just an environmental push—it’s a catalyst for a safer, greener, and economically sound transport ecosystem in India. From scrapping benefits to smarter vehicle recycling, the policy brings significant gains for both the public and the planet. For car owners, the time to act is now—stay informed, stay ahead.
FAQs
What is the age limit for vehicles under the Car Scrappage Policy?
Private vehicles older than 15 years and commercial vehicles over 10 years are subject to mandatory fitness tests and potential scrapping.
What happens if a car fails the fitness test?
If a vehicle fails the fitness test twice, it cannot be re-registered and must be scrapped at an authorized facility.
Are there financial incentives for scrapping old vehicles?
Yes, owners can receive road tax rebates, scrap value, and potential discounts from manufacturers.
Where can I scrap my vehicle?
Only Authorized Vehicle Scrapping Facilities (AVSFs), approved by the government, are eligible to carry out vehicle dismantling.
Is this policy applicable to two-wheelers?
Currently, the 2025 Car Scrappage Policy focuses on four-wheelers, though future updates may include two-wheelers as well.
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