Scrappage Policy 2025 Explained – Should You Scrap or Renew Your Old Car?

With rising pollution levels and an increasing number of ageing vehicles on Indian roads, the Vehicle Scrappage Policy 2025 aims to phase out old, polluting cars and promote cleaner, greener alternatives. But as a car owner, the dilemma remains: Should you scrap your old car or renew its registration?

Here’s a detailed look at what this policy means for you, and how to decide between scrapping and renewing.

What is the Vehicle Scrappage Policy 2025?

The Vehicle Scrappage Policy 2025 is a government-led initiative aimed at reducing pollution and road congestion by removing old, unfit vehicles from Indian roads.

Key objectives of the policy include:

• Phasing out private vehicles older than 20 years and commercial vehicles older than 15 years, unless they pass a fitness test.

• Encouraging voluntary scrapping with financial and procedural incentives.

• Promoting the purchase of new, fuel-efficient, and environmentally friendly vehicles.

This initiative is also aligned with India’s commitment to reducing its carbon footprint.

Key Dates and Deadlines

RC Renewal Rules Under the New Policy

With the introduction of new RC renewal rules, the process of keeping an old car on the road has become more expensive and stringent.

Here’s what’s changed:

• Increased fees for renewing the RC of vehicles older than 15 years.

• Mandatory fitness tests required at authorised Automated Testing Stations.

• Failure in the test means the vehicle cannot be used or registered again.

This is part of the broader scrap car policy India initiative to remove older vehicles from circulation.

Scrap vs. Renew – What Should You Choose?

Use this table to compare the pros and cons of scrapping versus renewing your vehicle’s RC:

Why Scrapping Your Old Car Makes Sense

If your vehicle is nearing or crossing the age threshold, scrapping it might be the better financial and environmental decision.

Benefits include:

• Up to 25% rebate on road tax for your new car

• Manufacturer discounts on new vehicles with scrappage certificate

• Waiver on registration charges for new vehicles

• Savings on fuel, repairs, and insurance with a new car

• Compliance with the scrap car policy India to reduce road pollution

Risks of Holding on to an Old Vehicle

While you might be emotionally attached to your old car, here are some reasons to reconsider:

• Risk of RC renewal rejection due to failed fitness test

• High repair and maintenance costs

• Poor fuel efficiency

• Higher insurance premiums

• Increased emissions, contributing to pollution

FAQs About Vehicle Scrappage Policy 2025

What is the purpose of the Vehicle Scrappage Policy 2025?

The goal is to reduce pollution, improve road safety, and encourage the purchase of fuel-efficient vehicles by phasing out old and polluting ones. It also helps decongest Indian roads and supports automotive industry growth.

Can I still use my old car if it passes the fitness test?

Yes, under the new RC renewal rules, private vehicles older than 20 years and commercial ones over 15 years can still be used if they pass the Automated Fitness Test. However, you’ll face higher fees and stricter testing standards.

What documents are required for scrapping my vehicle?

To scrap your vehicle under the scrap car policy India, you will need:

• Original RC (Registration Certificate)

• Valid ID proof (Aadhaar or PAN)

• Insurance documents (if available)

• Application form for scrapping

Are there incentives for scrapping my car?

Yes. Under the Vehicle Scrappage Policy 2025, scrapping an old vehicle comes with several benefits:

• Road tax rebate (up to 25%)

• Discounts from car manufacturers

• Exemption from new vehicle registration fees

Final Thoughts – Should You Scrap or Renew?

If your vehicle is more than 15–20 years old and starting to cost more in repairs or maintenance, scrapping is a smarter, more eco-friendly choice. It saves you money in the long run and aligns with national efforts toward greener mobility.

On the other hand, if your car is still in excellent condition and can pass the fitness test, you may consider renewing the RC. But keep in mind the higher costs and regulatory hurdles involved.