Are you holding on to an old car that’s just sitting in your garage, guzzling fuel, and racking up maintenance costs? With the new vehicle scrappage scheme India 2025, it might be time to say goodbye—and get rewarded for it.
The Indian government is offering a financial incentive to scrap outdated, polluting vehicles as part of its push toward cleaner mobility and reduced emissions.
Let’s break down how this old car scrapping policy works, what benefits you can expect, and how much incentive amount you might actually get.
What is the Vehicle Scrappage Scheme India 2025?
The vehicle scrappage scheme India 2025 is a government-backed policy aimed at phasing out vehicles that are:
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Over 15 years old for commercial use
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Over 20 years old for private use
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Unfit as per the Automated Fitness Test
Under this policy, you are encouraged to scrap your old vehicle in exchange for monetary and tax incentives to purchase a new one.
Benefits of the Scrappage Scheme
If you choose to scrap your old car or commercial vehicle, here’s what you can expect:
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Scrappage Certificate – Provided upon successful scrapping
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Up to 25% Road Tax Rebate – When purchasing a new vehicle
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Registration Fee Waiver – On your new vehicle
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Dealer Discount – Up to 5% on the ex-showroom price (if the manufacturer is participating)
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Scrap Value – About 4-6% of the vehicle’s original ex-showroom price
Incentive Amount Breakdown
Here’s a quick glance at the estimated incentive amount you can get under the old car scrapping policy:
| Vehicle Type | Vehicle Age | Incentive Amount (Estimated) | Includes |
|---|---|---|---|
| Private Car | 20+ years | ₹25,000 – ₹70,000 | Scrap value + tax & reg. benefits |
| Commercial Vehicle | 15+ years | ₹30,000 – ₹1,00,000 | Scrap value + tax & reg. benefits |
| Two-Wheeler | 15+ years | ₹5,000 – ₹10,000 | Scrap value only (limited incentives) |
Note: These figures vary based on vehicle condition, manufacturer participation, and state-specific policies.
How to Avail the Benefits
To benefit from the vehicle scrappage scheme India 2025, follow these steps:
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Locate a Registered Scrapping Facility (RVSF) – Only authorized scrappers can issue valid certificates
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Submit Vehicle Documents – RC, ID proof, and any additional state-required paperwork
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Vehicle Fitness Test (if needed) – To confirm that it qualifies as ‘End-of-Life Vehicle’
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Receive the Scrappage Certificate – This is essential for availing incentives
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Purchase a New Vehicle – Apply the benefits when registering your new car or bike
Key Points to Remember
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The scrappage scheme is voluntary, but failing fitness tests may result in deregistration
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All benefits are linked to the scrappage certificate, so don’t skip this part
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States may offer additional perks or tax relief, depending on local policies
FAQs on Vehicle Scrappage Scheme India 2025
Q1. Is scrapping my old car mandatory under this scheme?
No, the scheme is voluntary. However, if your vehicle fails the fitness test, it may be deregistered and not permitted for road use.
Q2. How do I find an authorized vehicle scrapping center?
You can visit the official website of the Ministry of Road Transport and Highways (MoRTH) or check your state transport department’s site for a list of authorized scrapping facilities.
Q3. Can I transfer the scrappage certificate to someone else?
No, the certificate is non-transferable and is only valid for the original owner of the scrapped vehicle.
Q4. Will I still get benefits if my vehicle is damaged or non-functional?
Yes, as long as it meets the age and registration conditions, you can scrap the vehicle and receive the applicable incentive amount.
Final Thoughts
The old car scrapping policy is a win-win: it helps reduce pollution, supports the auto industry, and puts some money back in your pocket. So if your vehicle is nearing the end of its life, the vehicle scrappage scheme India 2025 offers the right opportunity to upgrade—with a helpful incentive amount as a bonus.
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