• As Indians, we tend to cherish our vehicles and keep them for many years. While we might feel emotionally connected to our cars and bikes, using the same vehicle for extended periods can have negative effects on the environment and increase carbon emissions. To motivate us to dispose of old vehicles when they are beyond usefulness, the Indian government launched the vehicle scrappage policy in the 2021 budget. This policy’s purpose is to lessen the impact of aging vehicles and the pollution that these vehicles cause to the environment. Let us explore this further in the article.

What is Vehicle Scrappage Policy?

• The vehicle scrappage policy is a program to establish new regulations for managing private and commercial vehicles in a manner that fosters a new ecosystem to gradually remove polluting, unfit vehicles from the central database of Indian vehicles. Vehicles will be dismantled at automated testing locations and government-registered vehicle scrapping facilities throughout the nation.
• Under the vehicle scrap policy, private vehicles that are older than 20 years and commercial and government vehicles that exceed 15 years will be eliminated or scrapped. According to the policy, older vehicles must complete and pass a fitness test before re-registration; if they do not, they will be scrapped.

Highlights Of the Old Vehicle Scrappage Policy Announcement

• Vehicle owners who choose to scrap their two-wheeler or four-wheeler will receive a scrap value for the vehicle, which will amount to 4 to 6% of the ex-showroom price of the new vehicle they plan to buy.
• Owners who present the vehicle scrapping certificate while purchasing a new vehicle will receive waivers on new vehicle registration fees.
• New vehicle owners will also benefit from concessions of up to 25% for non-transport vehicles and up to 15% for transport vehicles regarding the motor vehicle tax.
• The government has additionally suggested that vehicle manufacturers in India provide a 5% discount on the sale of a new vehicle to buyers presenting the vehicle scrappage certificate.

The Categorisation of Vehicles Under the Scrappage Policy

Government Vehicles:
Vehicles owned by India’s Central and State Governments will be scrapped if they are over 15 years old.
Commercial Vehicles:
All commercial vehicles must undergo a fitness test after 15 years. If they succeed, they will be renewed for 5 years; if they do not, the vehicle will be scrapped.
Private Vehicles:
All private vehicles will need to pass a fitness test after 20 years. If they pass, they will be renewed for 5 years; if they fail, the vehicle will be scrapped.
Vintage Vehicles:
Vintage vehicles are classified as those older than 50 years. The government has currently exempted these vehicles from the auto scrappage policy.

Benefits of the Vehicle Scrappage Policy

• The primary objective of the car scrap policy is to alleviate the environmental burden and stimulate the nation’s economy. Here are some advantages.
• Protects the environment by considerably reducing air pollution.
• Generates additional job opportunities in the automobile industry.
• Benefits the automobile industry through enhanced sales and profits
• Vehicle owners receive numerous advantages in the form of waivers and concessions for choosing scrappage.
  
  FAQs
  
  What is the main purpose of implementing the vehicle scrap policy?
  
  The main purpose of implementing the vehicle scrap policy is to diminish environmental pollution and create growth opportunities for the automobile sector.
  
  What does a fitness check include?
• A fitness check includes a comprehensive examination of your car’s safety features, including seat belts, airbags, pollution assessments, headlight alignment verifications, indicators, brakes, engine parts, corrosion of components, etc.
  
  When will the policy take effect?
• Private vehicles older than 20 years will be de-registered starting on 1st June 2024, and commercial vehicles over 15 years will be de-registered from 1st April 2023.
  
  Disclaimer: For additional information on risk factors, terms and conditions, please read the sales brochure carefully before finalizing a purchase. *The discount amount may vary depending on vehicle specifications and registration location.