2025 Vehicle Scrappage Policy Update – Eligibility, Incentives & Process

The 2025 Vehicle Scrappage Policy Update is set to reshape the future of transportation in India. If you own an older vehicle, this is the right time to understand how the policy can impact you and what benefits you can ...

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The 2025 Vehicle Scrappage Policy Update is set to reshape the future of transportation in India. If you own an older vehicle, this is the right time to understand how the policy can impact you and what benefits you can enjoy. Let’s break it down in a clear, friendly way.

2025 Vehicle Scrappage Policy Update – Eligibility, Incentives & Process

Why the 2025 Vehicle Scrappage Policy Update Matters

2025 Vehicle Scrappage Policy Update – Eligibility, Incentives & Process

The vehicle scrappage 2025 initiative is designed to:

  • Phase out old and polluting vehicles

  • Improve road safety and air quality

  • Support the automobile industry’s transition to cleaner technologies

Eligibility Criteria – Is Your Vehicle Included?

Not every vehicle will need to be scrapped, but these are the key eligibility conditions under the 2025 Vehicle Scrappage Policy Update:

Vehicle Type Age for Scrappage Mandatory or Voluntary
Private Cars 20 years Voluntary unless unfit
Commercial Vehicles 15 years Mandatory if fitness test failed
Government Vehicles 15 years Mandatory
  • Vehicles that do not pass the fitness test will be declared as End-of-Life Vehicles (ELVs)

  • The old vehicle ban applies to unfit vehicles, especially in green and low-emission zones

Incentives You Can Expect

Here’s how the vehicle scrappage 2025 policy rewards owners who retire their old vehicles:

  • Scrappage certificate to claim benefits on new purchases

  • Up to 25% rebate on road tax for new private vehicles and up to 15% for commercial ones

  • Minimum 5% discount from manufacturers on new vehicle purchases (when presenting scrappage certificate)

  • Waiver of registration fees for new vehicles bought with a scrappage certificate

Car Disposal Process Made Simple

The car disposal process under the policy is straightforward:

Step 1

Identify and contact a government-registered scrappage centre

Step 2

Submit documents including registration certificate, ID, and address proof

Step 3

Get the vehicle tested (if required) at an automated fitness centre

Step 4

Once scrapped, receive your official scrappage certificate

Additional Benefits of Vehicle Scrappage 2025

The 2025 Vehicle Scrappage Policy Update helps the nation by:

  • Reducing dependency on fuel imports through promotion of fuel-efficient vehicles

  • Encouraging recycling of materials like steel, copper, and plastic

  • Cutting down on harmful emissions that affect public health

FAQs

What vehicles must be mandatorily scrapped under the policy?

Commercial vehicles older than 15 years and government vehicles beyond 15 years that fail their fitness test must be scrapped.

Can I sell my old vehicle to someone else instead of scrapping it?

You can, but if the vehicle is unfit or falls under an old vehicle ban in your area, it must be scrapped.

How can I find an approved scrapping centre?

You can check the Ministry of Road Transport and Highways website for the list of registered scrapping centres.

Do I get benefits immediately after scrapping my vehicle?

Yes, the scrappage certificate can be used right away to get tax rebates, registration fee waivers, and manufacturer discounts on a new vehicle.

Click here to learn more

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