The Indian government has been taking strong steps toward making road safer, reducing polluting, and promoting sustainability. The 2025 Vehicle Scrappage Policy in India mandates the scrapping of unfit vehicles, with specific rules for private and commercial vehicle based on age and fitness.
If you own an old vehicle, it’s crucial to stay updated about the latest rules and policies to avoid fines and to make the most of the benefits offered under this program.
Why the Vehicle Scrapping Policy was Introduced
The primary reasons behind this policy are:
- Reducing road pollution caused by old, unfit, and fuel-inefficient vehicles.
- Encouraging recycling of metal, plastic, and other materials.
- Boosting demand for new vehicles, especially electric and fuel-efficient ones.
- Ensuring road safety by removing unfit vehicles.
Key Government Rules in 2025
1.Age Limit for Vehicles
Private Vehicles:
- Petrol cars older than 15 years and diesel cars older than 10 years in Delhi are banned.
- Across India, fitness tests become mandatory after 15 years for private vehicles.
Commercial Vehicles:
- Must undergo a fitness test after 15 years.
- Failure to pass the test means the vehicle must be scrapped.
2.Mandatory Fitness Test
- All vehicles crossing the age limit must pass a fitness test at an Authorized Automated Testing Station (ATS).
- If a vehicle fails, it cannot be renewed for road use.
3.Certificate of Deposit (CoD)
When you scrap your vehicle at an Authorized Registered Vehicle Scrapping Facility (RVSF), you receive a Certificate of Deposit. This certificate can be used for:
- Road tax concessions on your next vehicle.
- Discounts from automakers (up to 5% in some cases).
- Exemption from registration fees when buying a new car.
4.Penalties for Non-Compliance
Owners of end-of-life vehicles who fail to scrap or renew fitness will face:
- Heavy Fines for driving unfit vehicles.
- Confiscation of the vehicle in some cases.
- No fuel supply (from July 2025, many states plan to stop fuel supply to such vehicles)
5.Incentives for Scrapping
- Scrap value of the old vehicle (4-6& of ex-showroom price).
- Possible rebates on new vehicle purchases.
- Reduced road tax (up to 25% for personal and 15% for commercial vehicles).
Role of RVSFs (Registered Vehicle Scrapping Facilities)
The government has approved a network of RVSFs across India. These facilities ensure:
- Eco-friendly dismantling and recycling of vehicles.
- Proper disposal of hazardous materials like batteries, fuel, and oils.
- Issuance of valid Certificate of Deposit for future benefits.
Documents Required for Vehicle Scrapping
Before you approach an RVSF, keep the following ready:
- Original RC (Registration Certificate)
- Owner’s Aadhaar & PAN card
- Insurance & PUC (if valid)
- Two passport-size photographs
- Consent letter if registered owner is deceased
FAQs
1.What is the Vehicle Scrapping Policy in India?
The Vehicle Scrapping Policy, introduced by the Government of India , aims to phase out old, polluting vehicles and encourage environmentally friendly mobility. As per the 2025 update, unfit vehicles are deregistered and must be scrapped at authorized scrapping centers.
2.From when is the updated scrapping policy effective?
The stricter rules, including fuel bans for old vehicles, came into effect from July 1, 2025.
3.Which vehicles are affected by the policy?
- Private Petrol Vehicles older than 15 years
- Private Diesel Vehicles older than 10 years
- Commercial Vehicles that fail fitness tests or exceed 15 years
- End-of-Life Vehicles (ELVs) deemed unfit during fitness checks
The Road Ahead
With stricter enforcement in 2025, the Vehicle Scrapping Policy is set to play a vital role in India’s shift toward a cleaner and greener transport system. Vehicle owners must stay informed and proactive to enjoy to enjoy the benefits and avoid penalties.
If your vehicle is nearing its end of life, now is the right time to plan its scrapping through an authorized facility. Not only will you comply with the law, but you’ll also contribute to a sustainable future.
Pro Tip:
Always scrap your vehicle at an authorized RVSF to ensure legal compliance and secure your Certificate of Deposit.
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