Vehicle Scrappage Policy 2025 – Age Limits, Benefits & Deregistration Rules

With growing concerns over pollution and road safety, the Vehicle Scrappage Policy 2025 India has been introduced to phase out old and unfit vehicles from Indian roads. This policy is designed not only to reduce emissions but also to boost the automobile industry and enhance overall road safety.

Let’s dive into what this policy means for you and how it might impact your current vehicle or your next purchase.

Vehicle Scrappage Policy 2025 – Age Limits, Benefits & Deregistration Rules

What is the Vehicle Scrappage Policy 2025?

The Vehicle Scrappage Policy 2025 is a government initiative aimed at removing outdated, polluting vehicles and replacing them with new, fuel-efficient models. It’s a move toward sustainable mobility and a cleaner environment.

Age Limits Under the Scrappage Policy

Fitness testing will become mandatory for vehicles beyond a certain age. If a vehicle fails the test, it will be subject to deregistration and may be scrapped.

Vehicle Age Criteria

Vehicle Type Private Vehicles Commercial Vehicles
Age Limit 15 years 10 years
Fitness Test Needed Yes Yes
Scrapping If Failed Mandatory Mandatory

Benefits of the Scrappage Policy 2025

This policy offers a range of benefits across economic, environmental, and personal ownership aspects.

Benefits for Vehicle Owners

  • Financial incentives for scrapping old vehicles

  • Waiver on vehicle registration fees

  • Road tax rebate from state governments

  • Discount on new vehicle purchases with scrappage certificate

Benefits for the Economy

  • Increased demand in the automobile and recycling industries

  • Generation of employment in vehicle testing and scrapping sectors

  • Reduction in raw material imports by promoting reuse of scrap

Benefits for the Environment

  • Reduction in air pollution caused by old vehicles

  • Lower carbon emissions from modern vehicles

  • Decrease in noise pollution and road hazards

Deregistration Rules and Fitness Testing

The old vehicle rules India emphasize regular testing and deregistration of vehicles that are no longer roadworthy.

Key Rules

  • Vehicles must undergo automated fitness tests at designated centres

  • If a vehicle fails the test, it will be de-registered

  • The owner can either scrap the vehicle or get it repaired for a retest

  • Failing the test twice will lead to mandatory scrapping

Penalty for Non-Compliance

  • Fines or seizure of vehicles operating without valid fitness certification

  • Denial of insurance or renewal of registration for unfit vehicles

Financial Incentives at a Glance

Incentive Type Benefit Estimate
Scrappage Certificate ₹15,000 to ₹50,000
New Vehicle Discount Approx. 5% of the new vehicle’s price
Road Tax Rebate Up to 25% (varies by state)
Registration Fee Waiver 100% exemption

FAQs

What is the main goal of the Vehicle Scrappage Policy 2025 India?

The primary aim is to remove old, polluting vehicles from the roads, reduce environmental impact, and promote the use of safer and fuel-efficient automobiles.

Can I still use my old car if it’s more than 15 years old?

Yes, but only if it passes the fitness test. If it fails, it must either be repaired and retested or scrapped under the scrappage policy 2025.

Where can I get my vehicle scrapped officially?

Authorized vehicle scrapping centres, approved by the government, will issue a scrappage certificate once your vehicle is dismantled responsibly.

What happens if I continue to use an unfit vehicle?

You may face penalties, your vehicle could be impounded, and insurance claims may be denied if your vehicle has been de-registered.

Final Thoughts

The Vehicle Scrappage Policy 2025 India is not just a regulatory shift—it’s a transformative step toward a cleaner, safer, and more responsible future. By encouraging the retirement of old vehicles, the government is also offering a chance for citizens to contribute to environmental protection and road safety while enjoying financial incentives.

Staying informed about the scrappage policy 2025 and old vehicle rules India ensures you’re not only compliant but also making the most of government-backed benefits.

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