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India’s 2025 Vehicle Scrappage Policy: What Car Owners Must Know

If you’re driving a 15-year-old vehicle or thinking twice about renewing that aging car’s registration, 2025 is going to be a year of big changes. The India Vehicle Scrappage Policy aims to bring a fresh breath of air — both literally and economically — by phasing out unfit, old vehicles that contribute to pollution and road safety concerns.

But what does this mean for everyday car owners like you and me? Let’s break it down in the most human, relatable way possible.

India’s 2025 Vehicle Scrappage Policy: What Car Owners Must Know

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What Is the India Vehicle Scrappage Policy?

Announced by the Ministry of Road Transport and Highways, the India Vehicle Scrappage Policy is a government-led initiative designed to phase out:

  • Private vehicles older than 15 years

  • Commercial vehicles older than 10 years (if they fail fitness tests)

The goal? To reduce air pollution, promote fuel-efficient vehicles, and create a circular economy in the automobile industry.

Key Features of the 2025 Policy

Here’s what you should expect as a vehicle owner:

Policy Feature Details
Voluntary Scrappage Owners can voluntarily scrap old vehicles
Mandatory Fitness Tests Required for private vehicles older than 15 years
Commercial Vehicles Rule Must pass fitness test after 10 years
Green Tax Imposition Higher road taxes on old vehicles failing tests
Scrappage Incentives Discounts and rebates on buying a new vehicle
Certificate of Deposit Provided when you scrap your vehicle – can be used to get tax rebates or discounts on new car purchases

What Happens to a 15-Year-Old Vehicle?

Under the India Vehicle Scrappage Policy, if you own a 15-year-old vehicle, you’ll need to get it tested at an automated fitness testing centre. If it fails the test or is deemed unsafe/unfit:

  • It can no longer be registered or driven on Indian roads.

  • You may face the old car ban in states with strict environmental laws.

  • You will be encouraged to send it for scrappage and receive benefits.

Important: The policy aims to retire unsafe and polluting vehicles — not punish responsible owners. If your 15-year-old car passes the fitness test, you’re good to go.

What Are the Benefits of Scrapping an Old Vehicle?

Scrapping might sound like a loss, but the policy is designed to reward responsible vehicle retirement.

Here’s what you may receive:

  • 5% discount on new vehicle purchase

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

  • Registration fee waiver

  • Scrap value of 4–6% of the old vehicle’s showroom price

Why Is the Policy Important?

This isn’t just about replacing your old Maruti or Hyundai. It’s about:

  • Reducing emissions from polluting vehicles

  • Creating job opportunities in vehicle recycling

  • Encouraging auto manufacturers to develop greener vehicles

  • Making Indian roads safer

The India Vehicle Scrappage Policy is part of a larger push to create a cleaner, greener India.

States Already Enforcing Old Car Ban

Some cities and states have already started enforcing strict bans on 15-year-old vehicles, especially petrol and diesel cars. For example:

  • Delhi has banned petrol vehicles over 15 years and diesel vehicles over 10 years.

  • Mumbai and Bengaluru are likely to follow suit soon.

If you live in or near a metro city, now is the time to check your car’s registration and plan ahead.

What Should Car Owners Do Now?

If you’re unsure about what to do next, here’s a simple checklist:

  • Check your car’s registration age

  • Locate the nearest fitness testing centre

  • Get your car tested if it’s approaching 15 years

  • Compare the cost of renewing vs. buying new

  • Consider scrapping if the car fails or if benefits outweigh repair costs

Frequently Asked Questions (FAQs)

Q1: Will my 15-year-old vehicle be automatically banned?

A: No. Only if it fails the automated fitness test or is deemed unfit for roads. However, some cities already enforce bans regardless of fitness.

Q2: Can I keep using my old car if it passes the fitness test?

A: Yes, you can continue driving your 15-year-old vehicle if it passes the test and meets emission norms.

Q3: What is the scrap value of my car?

A: Typically, you can expect 4–6% of your car’s original showroom price as scrap value. This varies by model and scrap dealer.

Q4: Where do I go to scrap my vehicle?

A: You can visit a government-registered scrappage facility. Once scrapped, you’ll receive a certificate of deposit to claim benefits.

Final Thoughts

The India Vehicle Scrappage Policy isn’t just about enforcing an old car banit’s a forward-looking step to ensure road safety, cleaner air, and modern infrastructure. As a car owner, embracing this change could save you money, offer you incentives, and help create a better environment.

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