Overview of the Vehicle Scrappage Policy
India's Vehicle Scrappage Policy, announced in 2021 and progressively implemented through 2024-2026, aims to phase out old, polluting, and unfit vehicles from Indian roads. The policy mandates fitness testing for vehicles beyond a certain age and offers incentives for owners to voluntarily scrap old vehicles and purchase new ones.
For private car owners, vehicles older than 20 years must pass a mandatory fitness test at an Automated Testing Station (ATS). For commercial vehicles, the threshold is 15 years. Vehicles that fail the test — or that owners choose to voluntarily scrap — can be taken to Registered Vehicle Scrapping Facilities (RVSFs) for legal dismantling and recycling.
Who Should Consider Scrapping?
You should evaluate scrapping if your vehicle falls into any of these categories:
- Private cars older than 15-20 years with high maintenance costs
- Two-wheelers older than 15 years that are rarely used
- Vehicles that fail emission tests or can't pass fitness certification
- Vehicles with structural damage from accidents where repair cost exceeds 60% of current market value
- Vehicles with revoked or expired registration that you don't intend to renew
Financial Benefits of Scrapping
Scrap Value Certificate
When you scrap your vehicle at an RVSF, you receive a Certificate of Deposit (scrapping certificate). This certificate entitles you to several financial benefits:
Road Tax Rebate
Up to 25% rebate on road tax when purchasing a new vehicle (for personal vehicles). This varies by state — some states like Gujarat and Maharashtra offer the full 25%, while others are still finalizing their rebate structures.
Registration Fee Waiver
Complete waiver of registration fees for the new vehicle purchased using the scrapping certificate.
Manufacturer Discounts
Most major automakers offer additional discounts of ₹15,000-50,000 for customers who provide a scrapping certificate. Maruti Suzuki, Hyundai, and Tata Motors have active programs. Check with your dealer for the latest offers.
Scrap Metal Value
You receive the fair market value of the scrap material in your vehicle. A typical passenger car yields:
- Steel body and chassis: 600-800 kg × ₹28-32/kg = ₹16,800-25,600
- Aluminum (engine parts, wheels): 30-50 kg × ₹130-160/kg = ₹3,900-8,000
- Copper (wiring, radiator): 5-8 kg × ₹600-700/kg = ₹3,000-5,600
- Battery (lead-acid): 1 unit = ₹400-800
- Tyres: 4 units × ₹100-200 = ₹400-800
- Glass, plastic, rubber: ₹500-1,500
Total typical scrap value for a mid-size sedan: ₹25,000-42,000
For SUVs and larger vehicles, scrap value can reach ₹40,000-60,000 due to more metal content.
Step-by-Step Scrapping Process
Step 1: Gather Documents
- Original Registration Certificate (RC)
- Owner's Aadhaar card and PAN card
- Insurance documents (even if expired)
- Pollution Under Control (PUC) certificate (if available)
- NOC from finance company (if the vehicle had a loan)
Step 2: Find a Registered Vehicle Scrapping Facility (RVSF)
Only scrap your vehicle at a government-registered RVSF. A list is available on the Parivahan portal (parivahan.gov.in). RVSFs are different from regular scrap yards — they follow environmental regulations for draining fluids, recovering refrigerants, and properly handling hazardous materials like airbag inflators and mercury switches.
Step 3: Vehicle Inspection at RVSF
The RVSF will inspect the vehicle, verify documents, and provide a valuation based on current scrap metal prices and the vehicle's weight/material composition.
Step 4: De-registration
The RVSF coordinates with the RTO to de-register the vehicle from the Vahan database. This is important — without de-registration, you could continue to receive road tax and insurance liabilities.
Step 5: Receive Certificate and Payment
After dismantling, you receive a Certificate of Deposit valid for 2 years (for claiming new vehicle benefits) and payment for the scrap value via bank transfer.
Two-Wheeler Scrapping
The process for two-wheelers is similar but simpler. A typical motorcycle yields:
- Steel and iron components: 50-80 kg = ₹1,400-2,500
- Aluminum (engine, wheels): 8-15 kg = ₹1,000-2,250
- Copper wiring: 0.5-1 kg = ₹300-700
- Battery, tyres, miscellaneous: ₹200-500
Total scrap value for a motorcycle: ₹3,000-6,000. For a scooter: ₹2,000-4,500.
While the scrap value seems low, remember that an old two-wheeler sitting idle also has costs — insurance renewal liability, parking space, and depreciation of remaining value.
Common Questions
Can I scrap a vehicle without RC?
It's difficult but possible. You'll need to file an FIR for lost documents, obtain a duplicate RC from the RTO, and then proceed with scrapping. Some RVSFs may accept vehicles with a court order or police verification.
What about vehicles with pending challans?
All pending traffic challans and fines must be cleared before de-registration. The RTO will not process de-registration with outstanding violations.
Can I sell individual parts before scrapping?
If you scrap privately (not through an RVSF), you can sell parts like alloy wheels, headlights, and working electronics on the used-parts market for more than their scrap material value. However, you won't get the Certificate of Deposit benefits. Evaluate which option gives you better total value based on your new vehicle purchase plans.