Vehicle Scrappage Policy 2025: Is Your Car About to Be Banned?
Thinking about holding on to your old ride forever? The new Vehicle Scrappage Policy 2025 might have other plans. Whether you’ve got a decade-old sedan or a trusty two-wheeler, this policy could determine if your vehicle stays on the road—or heads to the junkyard.
India is gearing up for cleaner, greener roads, and the Vehicle Scrappage Policy India is putting ageing vehicles under the scanner. If your car is x years old (spoiler alert: commercial vehicles over 15 years and private ones over 20), it might not be road-legal anymore. So, what’s next? Do you scrap it, get incentives, or somehow make it work?
We’re breaking it all down—what the Vehicle Scrappage Policy 2025 India means for you, how to check if your car is affected, and what your options are. Keep reading before your car gets the red light!
What Is the Vehicle Scrappage Policy 2025?
The Vehicle Scrappage Policy India is a government initiative aimed at phasing out unfit vehicles to reduce air pollution and improve road safety.
Here’s what you need to know:
1. Private vehicles older than 20 years and commercial vehicles older than 15 years must undergo a fitness test.
2. If the vehicle fails, it must be scrapped at a registered vehicle scrapping facility (RVSF).
3. If it passes, owners can renew the registration—but renewal fees and green taxes will be significantly higher.
4. Vehicles without a valid fitness certificate will be automatically deregistered by the Regional Transport Office (RTO).
5. Owners scrapping old vehicles can avail tax rebates, registration fee waivers, and manufacturer discounts when buying a new vehicle.
According to the Ministry of Road Transport and Highways (MoRTH), the Vehicle Scrappage Policy 2025 India aligns with global best practices to promote eco-friendly mobility.
Is Your Vehicle Affected by the Vehicle Scrappage Policy India?
The policy applies to all types of vehicles, regardless of fuel type. To check if your vehicle is impacted, consider the following:
Private Vehicles
1. If your car is 20 years old or more, it must pass a fitness test at an authorized testing center.
2. If it fails, the registration will be cancelled, and the vehicle must be scrapped.
3. If it passes, it can be re-registered, but at a higher cost due to green taxes.
Commercial Vehicles
1. Vehicles older than 15 years must undergo a fitness test to remain road-legal.
2. Failure to pass will result in automatic deregistration.
3. Owners may have to bear higher operating costs if they choose to continue using an older vehicle.
Impact on Insurance and Loans
1. Insurance companies will not provide coverage for deregistered vehicles.
2. Banks may refuse to issue loans for vehicles that are nearing the scrappage limit.
Vehicle owners can check their registration and fitness status on the VAHAN portal (mparivahan.gov.in).
Benefits of Vehicle Scrappage Under the Vehicle Scrappage Policy 2025 India
Scrapping an old vehicle comes with multiple benefits, ranging from financial savings to environmental improvements.
1. Financial Benefits
-> Discount on New Vehicles
Vehicle owners scrapping their old cars can get a 5-6% discount on the purchase of a new vehicle from manufacturers participating in the scheme.
-> Lower Road Tax
1. Owners of scrapped vehicles can get up to 25% reduction in road tax for private cars.
2. Commercial vehicle owners can receive up to 15% off on road tax.
-> Registration Fee Waiver
A scrappage certificate allows owners to skip registration fees when purchasing a new vehicle.
-> Reduced Maintenance & Fuel Costs
Old vehicles often require frequent repairs, leading to high maintenance costs. Additionally, fuel efficiency decreases over time, meaning older cars consume more fuel compared to newer models. By switching to a new, fuel-efficient vehicle, owners can save on maintenance and fuel expenses in the long run.
2. Environmental Benefits
-> Lower Carbon Emissions
Old vehicles contribute significantly to air pollution. Scrapping them will help India reduce carbon emissions and improve air quality, especially in major cities.
-> Encouragement of BS6 and Electric Vehicles
The policy encourages vehicle owners to upgrade to BS6-compliant or electric vehicles, which produce fewer emissions and offer better fuel efficiency.
3. Road Safety Benefits
-> Fewer Accidents Due to Vehicle Malfunction
Older vehicles are more prone to brake failures, engine breakdowns, and structural damage, increasing the risk of road accidents. Removing unfit vehicles from the roads can improve overall safety.
-> Better Traffic Flow
Many older vehicles operate at reduced speeds due to mechanical issues. Eliminating unfit vehicles can help ease congestion and improve overall traffic movement.
How to Scrap Your Old Vehicle in India?
If your vehicle is no longer roadworthy, follow these steps to scrap it legally and claim the associated benefits.
Step 1: Locate a Registered Vehicle Scrapping Facility (RVSF)
Look for government-approved scrapping centers. Some authorized scrappers include:
1. Maruti Suzuki’s MSRVs
2. Mahindra CERO
3. State-approved scrapping units
Avoid using unauthorized scrapyards, as they may not provide a valid scrappage certificate.
Step 2: Submit Required Documents
Ensure you have the following documents ready:
- Vehicle Registration Certificate (RC)
- Insurance documents
- Owner’s Aadhaar and PAN card
- Pollution Under Control (PUC) certificate
Step 3: De-Register the Vehicle at the RTO
Once scrapped, the facility will issue a Certificate of Destruction. This document is necessary to officially deregister your vehicle at the Regional Transport Office (RTO).
Step 4: Claim Benefits and Discounts
Use the scrappage certificate to:
- Claim tax rebates
- Get manufacturer discounts on new vehicles
- Waive registration fees for your next car
Should You Scrap or Keep Your Vehicle?
If your vehicle is nearing the scrappage age, you have two choices:
Keep Your Car If:
-It can pass the fitness test without requiring costly repairs.
-You don’t mind paying higher re-registration and green tax fees.
- You have a classic or vintage car that holds sentimental or resale value.
Scrap Your Car If:
- It fails the fitness test, making it legally undrivable.
- You want to save on fuel, repairs, and maintenance costs.
- You want to claim scrappage incentives and switch to a new, more efficient vehicle.
With the Vehicle Scrappage Policy 2025 India rolling out, keeping an old vehicle is becoming increasingly expensive. If your car or bike is on the list, consider scrapping it now to take advantage of the benefits before costs rise further.
If you're unsure about your vehicle’s status or need assistance with fitness tests, re-registration, or scrappage, MyRaasta can help. From expert guidance to seamless vehicle documentation support, we ensure a hassle-free experience. Check your vehicle’s status today and make an informed decision before the policy takes full effect.
