The Indian government will roll out the New Car Scrappage Rule 2025 India, marking a major shift in how old vehicles are evaluated and phased out. This regulation is designed to address rising concerns over environmental pollution and road safety. It introduces mandatory fitness testing for personal vehicles older than 15 years and commercial vehicles older than 10 years. Non-compliant vehicles will be marked for scrappage unless renewed with a fitness certificate.
This move aligns with the broader vehicle scrappage policy, aiming to modernize the country’s vehicle fleet by removing inefficient, polluting cars and encouraging adoption of newer, cleaner models.
Key Features and Compliance Requirements
Here is a breakdown of how the rule will work:
| Parameter | Private Vehicles | Commercial Vehicles |
|---|---|---|
| Age Limit for Testing | 15 Years | 10 Years |
| Mandatory Fitness Certificate | Yes (Post Age Limit) | Yes (Post Age Limit) |
| Renewal Frequency | Every 5 Years After 15 Years | Every Year After 10 Years |
| Scrappage If Unfit | Yes | Yes |
| Additional Green Tax | Applicable | Applicable |
Owners of older vehicles should prepare for automated alerts via the VAHAN portal. If a car fails the fitness test and the owner does not appeal or re-certify it within a grace period, the vehicle will be deregistered and automatically classified under the scrappage category.
Why the Government Introduced the New Rule
The old car ban is not just about clearing junk vehicles; it’s a strategic environmental and economic measure. Old cars, especially those lacking BS-VI compliance, emit disproportionately higher levels of pollutants. According to the Ministry of Road Transport and Highways, vehicles older than 15 years contribute to nearly 60% of total vehicular pollution, despite being a small fraction of the total population.
Moreover, the scrappage of outdated vehicles opens up opportunities in the recycling industry, especially for materials like steel, aluminum, and plastic. It also stimulates demand for newer vehicles, which in turn supports the domestic automobile sector and job creation.
Benefits for Car Owners Under the Vehicle Scrappage Policy
To ensure public cooperation, the government is providing multiple incentives for those voluntarily opting in under the vehicle scrappage policy:
- Road tax rebates up to 25% on new vehicle purchases
- Registration fee waivers for the new vehicle
- Discounts from car manufacturers for scrappage certificate holders
- Possible GST concessions (subject to state implementation)
These benefits can substantially reduce the cost burden of replacing an old car, especially if owners act early and plan the switch ahead of the deadline.
What Should Vehicle Owners Do Now?
As July 2025 approaches, vehicle owners must:
- Check vehicle age and registration date on the VAHAN portal
- Schedule a fitness test if the car crosses the 15-year mark
- Evaluate cost of repairs vs. value of scrappage incentives
- Obtain a scrappage certificate from authorized recycling centers if vehicle is unfit
Delaying could result in deregistration, penalties, or even seizure in some jurisdictions enforcing the old car ban strictly.
Conclusion
The New Car Scrappage Rule 2025 India is not just a compliance requirement but an opportunity. It nudges the country toward a cleaner automotive future while offering direct financial benefits to owners. Whether you drive a private sedan or run a fleet of commercial vans, preparing ahead can save money and hassle.
FAQs on New Car Scrappage Rule 2025 India
What vehicles are affected by the New Car Scrappage Rule 2025 India?
Any private vehicle over 15 years and commercial vehicle over 10 years will be subject to mandatory fitness testing. Failure leads to scrappage.
How do I get a fitness certificate for my old vehicle?
Visit a registered automated testing station, apply through the VAHAN portal, and complete the inspection. Certification is valid for 5 years (private) or 1 year (commercial).
What happens if my car fails the fitness test?
You may appeal, repair, and retest within a limited time. If the car still fails, it will be deregistered and must be scrapped.
Are there any benefits for voluntarily scrapping my old vehicle?
Yes. You can get tax rebates, registration fee waivers, and discounts on new car purchases, making it financially viable to upgrade.
Where can I scrap my car legally?
Only use government-authorized scrappage facilities listed on state transport department websites or the VAHAN portal.
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