SpotGenie Gyaan: India’s Vehicle Scrappage Policy (2025), What Every Vehicle Owner Must Know

Stop me if this sounds familiar:
You’ve seen an old, smoke-spewing car or an overloaded ancient truck wobbling on the highway and thought, “How is that thing still on the road?”

Well, India finally has an answer: the National Vehicle Scrappage Policy.

Launched to remove unsafe, polluting and unfit vehicles, the policy officially picked up momentum through 2023–2025 as states activated RVSF centres, Automated Fitness Test Stations (ATS) and tougher ELV rules.

Today’s blog gives you a clear, no-jargon breakdown of:

• What counts as an "old" vehicle
• When fitness tests are mandatory
• What happens if your vehicle fails
• Real monetary benefits of scrapping
• Environmental & safety impact
• State-level enforcement (Delhi, Maharashtra, Karnataka, etc.)
• What you should do right now

Let’s simplify it.

1. What Exactly Is India’s Vehicle Scrappage Policy?

The scrappage policy is a government-approved programme designed to phase out:

• Polluting
• Unsafe
• Fuel-inefficient
• Unfit

vehicles in India.

The policy applies to ALL vehicle categories:

• Cars
• Bikes
• Commercial vehicles
• Government vehicles
• Corporate fleets
• Transport & non-transport vehicles

Vehicles that reach the “end of life” must go to a Registered Vehicle Scrapping Facility (RVSF), certified centres designed to dismantle and recycle vehicles safely.

2. When Does Your Vehicle Become “Old” or “End-of-Life” (ELV)?

Private Vehicles

• Petrol: Fitness test starts at 15 years
• Diesel: Many states enforce stricter limits; e.g., Delhi NCR bans diesel cars after 10 years
• After 15 years → Must undergo fitness test at Automated Fitness Testing Stations (ATS)
• Renewal possible only if it passes

Commercial Vehicles

• Mandatory fitness tests every 2 years after 8–10 years of life
• Failure = vehicle becomes ELV

Government Vehicles

• Automatically scrapped after 15 years

3. What Happens During a Fitness Test?

Fitness tests are fully automated and check:

• Braking efficiency
• Emissions level
• Headlight alignment
• Suspension integrity
• Noise pollution
• Structural wear
• Chassis condition
• Safety components

If it passes, you can renew the registration.
If it fails, the vehicle is tagged Unfit → ELV → Must be scrapped.

Delhi, Bengaluru, Mumbai and Pune have already integrated stricter ATS implementation.

4. What Benefits Do You Get for Scrapping Your Vehicle?

When you scrap your old car or bike at an RVSF, you get:

4.1 Certificate of Deposit (CoD)

A digital proof that your vehicle has been scrapped. This is valuable because it gives you:

4.2 Road Tax Rebate

• Up to 25% for private vehicles
• Up to 15% for commercial vehicles

4.3 OEM Discount

Many manufacturers offer 5% discount on buying a new vehicle if you show CoD.

4.4 Scrap Value

• Approx 4–6% of ex-showroom price paid by RVSF
• Heavier vehicles yield higher scrap revenue

4.5 Registration Fee Waiver

New vehicle bought with CoD = No registration fees

5. Why India Needed This Policy

India has:

• The largest number of old vehicles in Asia
• Severe pollution hotspots
• High road fatalities from old, unsafe vehicles
• A growing need for recycled steel & metals

Scrapping improves:

• Road safety
• Air quality
• Fuel efficiency
• Manufacturing circular economy
• Reduced import burden on steel and aluminium

States like Delhi, Maharashtra, UP, Gujarat and Karnataka are already enforcing scrappage more aggressively.

6. Challenges with the Policy

• Not enough ATS centres in some states
• People unaware of incentives
• Emotional attachment to older cars (especially Maruti 800 / Omni / Gypsy owners)
• State-wise variations in implementation
• Dealers not actively promoting scrappage benefits
• Scrap yard accessibility in rural belts

However, with EV growth and rising emission norms (Bharat Stage VI Phase 2), scrappage will become inevitable.

7. Why This Matters to Every Vehicle Owner

At SpotGenie, we focus on awareness, responsibility and safety.

Scrapping helps:

• Remove unsafe vehicles that cause roadside hazards
• Reduce roadside breakdowns, accidents, fires
• Improve public safety with fitter, newer cars on roads
• Promote digital accountability & cleaner mobility

The more old vehicles we phase out, the safer and cleaner our roads become.

8. What You Should Do Right Now

• Check your RC date → If near 15 years, begin evaluating options
• Locate the nearest Registered Vehicle Scrapping Facility (RVSF)
• Get a Voluntary Vehicle Inspection
• Compare incentives before choosing a new car
• Save your Certificate of Deposit (CoD)
• Verify if your state offers additional scrappage benefits

🔗 Other SpotGenie Reads You’ll Like

Brand Origins, The Stories Behind the Badges That Move India
Hatchbacks, India’s Everyday Hero
How Legal Self-Drive Businesses Operate
ADAS Levels Explained for Indian Cars
Mumbai–Ahmedabad Bullet Train Progress 2025

Follow us on:
🅾 Instagram | ⓕ Facebook | 𝕏 X | ▶️ YouTube | 🟢 WhatsApp