All You Need To Know About Vehicle Scrappage Policy in India

All You Need To Know About Vehicle Scrappage Policy in India ( Code 0081 )


All You Need To Know About Vehicle Scrappage Policy in India

All You Need To Know About Vehicle Scrappage Policy in India

In India, the major concern among both the people and the government is how to control vehicular pollution. According to the reports, the majority of pollution is the result of vehicles, including cars and two-wheelers. Therefore, the government of India keeps implementing new policies as a preventive measure against pollution. In the year 2021, a vehicle scrappage policy was introduced to improve air quality and promote safe and environmentally friendly automobiles like electric vehicles. Continue reading to find out more about this policy in detail.

What Is the New Vehicle Scrappage Policy?

The new Vehicle Scrappage Policy in India is the initiative taken by the government to replace older vehicles, particularly 20 years with new and updated technology-based automobiles. The policy came into existence on August 13, 2021, with the objective to reduce pollution, create job opportunities, and boost the demand for new vehicles. Apart from India, many other nations including Germany, the USA, Canada, and China have also implemented vehicle scrappage programs to control vehicle emissions.

Under the new vehicle scrappage policy, if any commercial or personal-use vehicles, especially older than 20 years fail to clear the pollution control certificate test, then the authorities will scrap it. The leading automobile manufacturers in possibilities, Mahindra & Mahindra’s CERO, Maruti Suzuki, and others have started their own scrappage centres to implement the policy.

What Are The Key Benefits Of Vehicle Scrappage Policy?

Listed below are the advantages of introducing a vehicle scrappage policy.

  • Environment-Friendly:

As we all know, pollution is a major concern and is causing severe health problems, so it is important to work towards a sustainable and better future. The Vehicle Scrappage Policy would be advantageous in creating more space for eco-friendly and non-polluting vehicles.

  • Boost Automobile Industry: 

People typically start seeking better alternatives, such as environmentally friendly electric vehicles, when old cars are discarded. As a result, the demand for new cars has increased, which has subsequently led to the growth of the automobile industry.

  • Scrapping Certificate Incentives:

If customers present scrapping certificates, they will be eligible for generous bonuses when they trade in their old four- or two-wheelers and purchase new ones. In addition, they may also get a reduction in the road tax and GST, a waiver of the registration charge, discounts from automakers, and many other benefits.

  • Vehicle Owner’s Safety: 

An automobile becomes riskier to operate as it ages. Since the parts deteriorate and rust, the likelihood of a breakdown and accidents increases. Because new automobiles will have improved safety features, it is safe to scrap old cars and buy new, modern cars.

  • Increase Metal Recycling Business:

When the old vehicles are scrapped, materials such as copper, plastic, and steel are also recycled. Therefore, this policy has become advantageous for the people working in the metal recycling business.

What Is The Goal Of Vehicle Scrappage Policy?

The Vehicle Scrappage Policy aims to obsolete outdated vehicles, lower urban pollution levels, and increase sales in the automobile industry. In addition to this, the policy will create job opportunities and recycle the materials used in old vehicles. At present, there are 75 centers where old vehicles are scrapped; however, the count may increase to 400–500 in the forthcoming years.

Where Are The Old Vehicles Tested or Scrapped?

The following considerations should be taken into account when your vehicle registration is due for renewal.

  • You must visit an authorised Automated Testing Station (ATS) to check if your vehicle is good to drive on Indian roads.
  • If your vehicle has not been certified by the ATS center, take it to a scrap yard to be scrapped.
  • You can scrap your vehicle till the ATS certificate is functional. You can check this through the VAHAN database.

What Vehicles Are Included In The Scrappage Policy?

Now that you know where the old vehicles are scrapped, here are the vehicle categories included in the scrappage policy.

  • Commercial Vehicles: Commercial vehicles are those utilised for transportation in businesses. After 20 years, these automobiles will go through a fitness test. If the vehicle fails the test, it will be demolished in accordance with the vehicle scrappage policy.
  • Private Vehicles: Private automobiles and two-wheelers that are owned by people for their personal use would also be scrapped after 15 years if they are deemed unsuited for the test, much as business vehicles.
  • Government Vehicles: Vehicles older than 15 years that are owned by the state and central government will be scrapped as per the new scrappage policy.
  • Vintage Vehicles: Even though they are often older than the majority of four- and two-wheelers, vintage cars are quite valuable and dear to many people. Additionally, they aren’t driven as much, so their terms and circumstances for disposal are different.


The Vehicle Scrappage Policy is a great initiative by the government to promote newly introduced electric vehicles as a safe and eco-friendly alternative to fuel-based vehicles. Whether you own a two-wheeler or a car, if it is older than 15-20 years, it must have been taken for an ATS examination. If you sell your old vehicle for scrapping, then you must get a lot of discounts and incentives on the purchase of new vehicles.

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