The Ministry of Road Transport and Highways has launched the Voluntary Vehicle Modernization Program, also known as the Vehicle Scrapping Policy, aimed at phasing out unfit, polluting vehicles across India. The initiative seeks to create an ecosystem for scrapping old vehicles through a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs). Currently, there are over 60 RVSFs across 17 states and Union Territories and more than 75 ATSs in 12 states and Union Territories, with additional facilities planned.
Union Minister for Road Transport & Highways, Shri Nitin Gadkari, recently met with a delegation of CEOs from the Society of Indian Automobile Manufacturers at Bharat Mandapam. The meeting, attended by Ministers of State Shri Harsh Malhotra and Shri Ajay Tamta, focused on promoting the scrapping of privately owned commercial and passenger vehicles to replace older, polluting models with newer, less polluting ones.
During the discussions, several commercial and passenger vehicle manufacturers agreed to offer limited-time discounts for vehicles purchased against a Certificate of Deposit (Scrappage Certificate). This move is intended to incentivize the scrapping of end-of-life vehicles and encourage the use of safer, cleaner, and more efficient vehicles on Indian roads.
Discounts for Commercial Vehicles
Several commercial vehicle manufacturers, including Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu, have announced discounts for scrapping commercial vehicles:
- Vehicles with Over 3.5 Tonnes GVW: A 3% discount on the ex-showroom price for vehicles scrapped by the owner within the last six months.
- Vehicles with Less Than 3.5 Tonnes GVW: A 1.5% discount on the ex-showroom price for vehicles scrapped by the owner within the last six months.
Additionally, discounts are available for purchasing a vehicle against a traded Certificate of Deposit from a scrapped commercial vehicle:
- Over 3.5 Tonnes GVW: A 2.75% discount on the ex-showroom price.
- Less Than 3.5 Tonnes GVW: A 1.25% discount on the ex-showroom price.
These incentives may also apply to buses and vans.
Discounts for Passenger Vehicles
Passenger vehicle manufacturers such as Maruti Suzuki India Ltd, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India, and Skoda Volkswagen India, are offering the following discounts:
- 1.5% of the Ex-Showroom Price or Rs 20,000: Whichever is less, for passenger vehicles scrapped by the owner in the last six months. The scrapped vehicle details must be linked in the Vahan system.
- Additional Discounts: Individual manufacturers may offer additional discounts on specific models.
Mercedes Benz India is providing a flat discount of INR 25,000 on top of all existing discounts.
These manufacturer discounts are in addition to the scrap value provided by RVSFs and existing incentives such as Motor Vehicle tax concessions, waiver of registration certificate fees, and waiver of liabilities by the Government of India under the Vehicle Scrapping Policy. These benefits are linked to the certificate of deposit (CD) on the purchase of a new vehicle and are applicable in many states.
This policy aims to enhance road safety and reduce pollution, aligning with India’s broader goals of sustainability and environmental protection.
