Vehicle Scrappage Policy in India – Highlights and Benefits | Oxygen Auto

Vehicle Scrappage Policy in India - Highlights and Benefits | Oxygen Auto

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Highlights of the Vehicle Scrappage Policy in India are crucial for understanding the significant impact it will have on the automotive industry and the environment. With the government’s focus on reducing vehicular pollution and promoting sustainable practices, this policy aims to phase out old and polluting vehicles by offering benefits such as incentives for scrapping old vehicles, promoting the adoption of electric vehicles, and creating a healthier environment for all. Oxygen Auto breaks down the key points of this policy to help you navigate through its implications efficiently.

Policy Highlights

The Vehicle Scrappage Policy in India aims to promote the environmentally friendly disposal of old and polluting vehicles, while simultaneously encouraging the adoption of newer, safer, and more efficient ones. The key highlights of this policy include mandatory scrapping of vehicles older than 20 years, incentives for voluntary scrapping, and stricter emission norms for vehicles.

Eligibility Criteria for Vehicles

Eligibility may vary based on the region and specific regulations enforced by the RTO. For example: All petrol vehicles older than 15 years and diesel vehicles older than 10 years are considered end-of-life (ELV) vehicles in Delhi. It is advisable to verify the eligibility criteria that apply to your location before proceeding with the scrapping process to avoid any legal complications.

The scrappage process is designed to be simple and efficient. Once a vehicle meets the eligibility criteria, the owner can take it to an authorized scrapping center for evaluation. If the vehicle is deemed fit for scrapping, a certificate of destruction will be issued, and the owner will be eligible for incentives as per the policy.

Economic Impact

Boost in Auto Industry

An effective vehicle scrappage policy in India is expected to provide a significant boost to the auto industry. By incentivizing the replacement of old vehicles with new ones, the policy will lead to an increase in demand for automobiles. This surge in demand will not only benefit manufacturers but also stimulate growth in ancillary industries such as auto parts suppliers, dealerships, and service centers.

Additionally, the scrappage policy will modernize the existing vehicle fleet in the country, leading to an increase in the adoption of vehicles that comply with more stringent emission norms. This shift towards cleaner and more fuel-efficient vehicles will not only benefit the environment but also position the auto industry in India as a global leader in sustainable transportation.

Job Creation and Investment Opportunities

The implementation of a vehicle scrappage policy is expected to create numerous job opportunities across various sectors of the economy. As the demand for new vehicles increases, there will be a need for more workers in manufacturing plants, sales outlets, and maintenance facilities. This surge in employment will not only reduce the unemployment rate but also contribute to the overall economic growth of the country.

Moreover, the policy will attract significant investments in the auto sector, both from domestic and international players looking to capitalize on the growing market. This influx of capital will not only result in the expansion of existing facilities but also lead to the establishment of new manufacturing units, research centers, and technology hubs, further bolstering the economy.

Impact: The job creation potential of the vehicle scrappage policy extends beyond the auto industry. As new opportunities arise in related sectors such as recycling, logistics, and infrastructure development, there will be a ripple effect on the overall employment landscape of the country.

Environmental Benefits

Reduction in Pollution

To address the pressing issue of pollution, the Vehicle Scrappage Policy in India plays a crucial role. By phasing out old vehicles that are major contributors to air pollution, the policy aims to significantly reduce harmful emissions that degrade air quality. Older vehicles tend to have higher emissions of pollutants such as carbon monoxide, nitrogen oxides, and particulate matter, which pose serious health risks to the public.

By removing these vehicles from the roads, the policy helps in curbing pollution levels and improving the overall air quality in cities. This proactive approach not only benefits the environment but also enhances public health by reducing respiratory illnesses and other health issues associated with poor air quality.

Improved Energy Efficiency

For a sustainable future, it is vital to focus on improving energy efficiency in transportation. The Vehicle Scrappage Policy encourages the adoption of energy-efficient vehicles by providing incentives for scrapping old vehicles and purchasing new ones that comply with BS-VI emission norms. This transition to newer vehicles with advanced technologies not only reduces emissions but also enhances fuel efficiency.

To achieve a greener and more sustainable transportation sector, the emphasis on modernizing the vehicle fleet is crucial. The policy’s push for upgrading to environmentally friendly vehicles contributes to overall energy conservation efforts and paves the way for a cleaner and more efficient transport system.

Challenges and Limitations

Implementation Hurdles

Unlike the enthusiastic initiation of the Vehicle Scrappage Policy in India, the implementation phase poses several challenges. The lack of proper infrastructure for scrapping and recycling facilities is a major hurdle. Without sufficient resources in place, the process of decommissioning old vehicles may face delays and bottlenecks.

With the need for significant investment in setting up authorized scrappage centers and recycling plants, the financial burden on the government and private sector is substantial. Moreover, ensuring compliance with environmental norms and safety regulations during the scrappage process adds to the complexity of implementation.

Public Acceptance and Awareness

With the Vehicle Scrappage Policy being a relatively new concept in India, public acceptance and awareness pose significant challenges. Many vehicle owners may be hesitant to scrap their old vehicles due to sentimental attachment or lack of understanding of the benefits of the policy. Creating awareness about the environmental and economic advantages of scrapping old vehicles is crucial to gain public acceptance.

To address the issue of public acceptance, effective communication strategies need to be devised to reach out to vehicle owners across the country. Encouraging participation through incentives and educational campaigns can help bridge the gap in understanding and promote the adoption of the Vehicle Scrappage Policy.

To further enhance Public Acceptance and Awareness, partnerships with industry stakeholders and collaboration with media platforms can amplify the reach of the message. Educating the public about the benefits of vehicle scrappage, such as reducing pollution and promoting sustainable practices, is crucial for the successful implementation of the policy.


The Vehicle Scrappage Policy in India presents a comprehensive plan to phase out old and polluting vehicles, incentivize the adoption of newer and cleaner vehicles, and boost the automotive industry. By highlighting the key features and benefits of this policy, Oxygen Auto aims to increase awareness and encourage individuals and businesses to participate in this initiative towards a cleaner and sustainable future.

Oxygen Auto’s Approach to Car Scrapping

Assuming you are looking for a reliable and efficient car scrapping service in Delhi NCR, Oxygen Auto is the perfect choice for you. With years of experience in the industry, Oxygen Auto has developed a streamlined approach to car scrapping that ensures a hassle-free and environmentally friendly disposal of your old vehicle.

How it works?

Scrapping your car with Oxygen Auto is a straightforward 3-step process.

1. Scan the a QR code and chat with us on WhatsApp, share your car details and that’s it

2. In under 60 seconds, get the ‘BEST QUOTE’ for your vehicle by our engineers and schedule your free pickup.

3. Receive payment before the pickup

We follow strict procedures to ensure that every step of the scrapping process is done in compliance with environmental regulations. Our trained professionals dismantle the vehicle, separating and recycling the reusable parts, and disposing of hazardous materials in an eco-friendly manner.

You also receive:
Legal Certificate of Deposit (CD), valid for 2 years which can be used for discounts on taxes in your new car
– Genuine chassis plate & scrapping video
– One stop for all your clearances – Challan/RC etc 


Q: What is the Vehicle Scrappage Policy in India?

A: The Vehicle Scrappage Policy in India is a government initiative aimed at phasing out old and polluting vehicles from the roads to reduce pollution levels and promote the adoption of environmentally friendly vehicles.

Q: How does the Vehicle Scrappage Policy work?

A: Under the Vehicle Scrappage Policy, owners of old vehicles are encouraged to scrap their vehicles by offering financial incentives and discounts on the purchase of new vehicles. Vehicles older than 15 years will be eligible for scrappage.

Q: What are the benefits of the Vehicle Scrappage Policy?

A: The Vehicle Scrappage Policy will help in reducing vehicular pollution, improving fuel efficiency, boosting the automobile industry, and creating job opportunities in the recycling and manufacturing sectors.

Q: Will the Vehicle Scrappage Policy apply to all types of vehicles?

A: Yes, the Vehicle Scrappage Policy will apply to all types of vehicles, including private cars, commercial vehicles, and government vehicles, that are older than 15 years and fail to pass fitness tests.

Q: How can vehicle owners avail the benefits of the Vehicle Scrappage Policy?

A: Vehicle owners can avail the benefits of the Vehicle Scrappage Policy by registering their vehicles for scrappage at authorized scrapping centers and following the guidelines set by the government for the scrappage process.

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