The Vehicle Scrappage Policy India 2025 is now active nationwide, marking a bold step by the Indian government to phase out old and polluting vehicles. The policy mandates the voluntary deregistration and recycling of vehicles that are over 15 years old (for commercial use) or 20 years old (for private use). In return, vehicle owners receive financial and tax benefits when they scrap their vehicles through official channels.
This scrappage initiative aims to improve road safety, reduce pollution, and boost the adoption of fuel-efficient and environmentally friendly automobiles. With incentives tied to both car scrappage and new vehicle purchases, this program is already reshaping India’s auto sector and is being welcomed by both consumers and automakers.
Key Rules Under the 2025 Scrappage Policy
The government has laid out a clear framework to implement the auto policy 2025 across all states. These rules are designed to simplify the scrappage process and make it rewarding for those choosing to retire their old vehicles.
Here are the key guidelines under the policy:
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Commercial vehicles over 15 years old must undergo a fitness test; if failed, they are deemed unfit and must be scrapped
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Private vehicles over 20 years old are considered eligible for scrappage, whether or not they pass a fitness test
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Fitness tests are mandatory and must be conducted at government-authorized Automated Testing Stations
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Vehicles that fail fitness tests or lack valid registration will be automatically deregistered
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Owners must visit authorized scrapping centers to initiate the process
| Vehicle Type | Age Limit for Scrappage | Fitness Test Required | Benefit Eligibility |
|---|---|---|---|
| Commercial Vehicles | 15 years | Yes | Yes |
| Private Vehicles | 20 years | Yes (Optional) | Yes |
| Government Vehicles | 15 years (mandatory) | No | NA |
Benefits of the Vehicle Scrappage Policy
The Vehicle Scrappage Policy India 2025 is not just about regulation — it comes with multiple benefits to encourage participation. Owners scrapping their old vehicles receive a mix of financial incentives, discounts, and fee exemptions when purchasing new vehicles.
Key benefits include:
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Scrappage certificate issued by the scrapping center
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Up to 25% rebate on road tax for new private vehicles
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Up to 15% rebate on road tax for commercial vehicles
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Manufacturer discount of 5% on the ex-showroom price of a new vehicle
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Waiver of registration fees for new vehicle purchase
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Possible GST benefits (state-dependent)
These advantages make deregistration not only eco-friendly but also economically appealing for vehicle owners planning to upgrade.
Who Should Scrap Their Vehicle Under This Policy?
The scrappage policy is ideal for:
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Owners of vehicles over the permitted age limits
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Vehicle users facing high maintenance or repair costs
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Fleet operators looking to modernize their fleets
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Environment-conscious citizens wanting to reduce emissions
The car scrappage process is simple and now fully digitized. Vehicle owners can locate their nearest authorized scrapping center, book a slot, and receive a certificate after successful dismantling of the vehicle. This certificate can then be used to claim the benefits while buying a new vehicle.
How to Scrap Your Vehicle and Avail the Benefits
To make the auto policy 2025 effective and accessible, the government has set up an online framework and a network of registered scrapping centers. These centers handle the de-registration process, dismantling, and certification.
Steps to scrap your vehicle:
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Visit the Ministry of Road Transport’s official website or scrappage portal
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Find an authorized scrapping facility in your city
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Submit documents like RC, insurance, and ID proof
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Vehicle is inspected and dismantled safely
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Receive a digital scrappage certificate
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Use the certificate to claim rebates on new vehicle purchase
Vehicle owners are advised not to sell old vehicles in the unregulated resale market. Instead, by following this official route, they contribute to road safety, reduce pollution, and earn monetary rewards.
FAQs
What is the Vehicle Scrappage Policy in India 2025?
It is a government program encouraging voluntary scrapping of old vehicles to reduce pollution and improve road safety, with financial benefits for vehicle owners.
When is a vehicle eligible for scrappage?
Private vehicles above 20 years and commercial vehicles above 15 years of age are eligible, especially if they fail a fitness test.
What benefits do I get for scrapping my old vehicle?
You receive a scrappage certificate, up to 25% rebate on road tax, registration fee waiver, and a manufacturer discount on a new vehicle.
Is the scrappage process mandatory?
It is voluntary for most, but commercial and government vehicles above a certain age are subject to mandatory testing or de-registration.
How can I scrap my vehicle under this policy?
Visit an authorized scrapping center with required documents, complete the process, and get a certificate to avail new vehicle benefits.
Can I sell my vehicle instead of scrapping it?
Selling an old vehicle is allowed, but scrapping offers official benefits and ensures eco-friendly disposal. Reselling may not provide the same incentives or safety assurance.
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