Is Your Car Over 15 Years Old? Here Are The Car Scrapping Rules You Need to Know

Suppose you own a car that's over 15 years old. In that case, you should be aware that 21 states and union territories (UTs) are offering up to a 25 per cent discount on the price of a new personal vehicle or on-road tax for customers who scrap their old vehicles and purchase a new one, according to a report by TOI. For commercial vehicles, the discount is 15 per cent.

What is India’s Vehicle Scrappage Policy?

The policy mandates that commercial vehicles over 15 years old and passenger vehicles over 20 years old must undergo fitness and emission tests. These tests evaluate various factors including brake performance, engine efficiency, and others, to determine whether the vehicle is fit for use or considered scrap. According to the policy, automated testing stations and vehicle scrapping provisions will be established gradually in phases.

In 2022, automated testing was implemented to inspect commercial vehicles. Starting from June 1, 2024, all passenger vehicles over 15 years old will also undergo the same rigorous testing.

States Offer Discounts on Vehicle Scrappage

Many states, like Uttar Pradesh, Haryana, Karnataka, Maharashtra, Bihar, Madhya Pradesh, Gujarat, Punjab, and Kerala, have offered discounts to encourage people to scrap their old and unfit vehicles. The central government has required all states to support this effort.

According to Dipak K Dash from the TOI, discounts on vehicle scrappage vary from 10 per cent to 25 per cent and depend on different factors like the scrap value or the price of the new vehicle. For example, Haryana offers a discount of 10 per cent or up to 50 per cent of the scrap value, while Uttarakhand provides a 25 per cent discount or a maximum of Rs 50,000, whichever is lower. Karnataka offers a fixed discount on road tax based on the price of the new private vehicle. For instance, vehicles priced above Rs 20 lakh are eligible for a discount of Rs 50,000. Lastly, Puducherry offers a generous discount of 25 per cent or a maximum of Rs 11,000, whichever is lower.

Is Your Car More Than 15 Years Old? These Are The New Car Scrapping Rules You Must Know | Freepik

What is the objective of the Vehicle Scrappage Policy?

The primary objectives of this policy are:

• To reduce pollution by scrapping 1 crore vehicles without valid fitness and registration.
• To enhance vehicular safety.
• To improve fuel efficiency and reduce maintenance costs for vehicle owners.
• To stimulate auto sector sales and create employment opportunities.
• To increase the availability of low-cost materials for the steel, electronics, and automotive industries.

Vehicle Scrappage Policy: FAQs

What incentives are offered for scrapping old vehicles?

The government provides incentives for scrapping old vehicles and purchasing new ones, including:

• Auto manufacturers can offer up to a 5% discount on the purchase of new vehicles.
• Buyers receive a waiver on registration fees for new vehicle purchases.
• Vehicle owners may receive scrap value equivalent to 4-6% of the new vehicle's ex-showroom price.
• States can refund up to 25 per cent and 15 per cent of road tax for personal and commercial vehicles, respectively.

Which other countries have introduced Vehicle Scrappage Policy?

The United States, Germany, Canada, and China are some of the countries which have introduced Vehicle Scrapping Policy to boost their automotive industry.

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