Revamp On The Road: Centre To Rethink Vehicle Scrapping Policy, Offering Relief For Older Cars

The Centre may soon introduce amendments to its vehicle scrapping policy, which was launched three years ago, potentially offering relief to vehicles over 15 years old.

The Ministry of Road Transport and Highways (MoRTH) has hinted at revising the current rule that mandates scrapping vehicles if deemed unfit by fitness test centres.

Instead, the focus may soon shift from vehicle age to fitness criteria, like emissions, as explained by Road Transport Secretary Anurag Jain during the annual conference of the Society of Indian Automobile Manufacturers (SIAM).

“When you come out with a policy that scrapping is mandatory after 15 years, people come back to us with a question. If I have maintained my vehicle well, why do you want to scrap my vehicle?” Jain explained.

Under the policy, private vehicles older than 20 years and commercial vehicles over 15 years must be scrapped if they fail fitness tests, and are no longer eligible for re-registration.

The scheme also provided incentives such as up to 5 per cent discounts from automakers and waivers on registration fees for new vehicles bought with scrapping certificates. Despite these perks, the policy has seen limited adoption, with only 120,000 vehicles scrapped so far, 61,000 of which are over 15 years old.

The proposed policy shift comes on the heels of Union Minister Nitin Gadkari’s remarks that the auto industry could see an 18 per cent boost in sales through a robust vehicle scrapping system. He cited examples from Europe and the US, where similar policies have led to a sales growth of up to 15 per cent for carmakers.