Vehicle Scrappage Policy
Complete guide to India's National Vehicle Scrappage Policy — 25% road tax rebate on new vehicles, 4-6% Certificate of Deposit, mandatory rules for Delhi NCR (10-yr diesel, 15-yr petrol bans), and how to maximize benefits by switching to EV.
What is the National Vehicle Scrappage Policy?
The National Vehicle Scrappage Policy, announced by the Ministry of Road Transport and Highways in 2021, creates an organized system for retiring old polluting vehicles voluntarily. The policy aims to:
- Reduce vehicular pollution by removing high-emission vehicles from roads
- Boost auto manufacturing by accelerating new vehicle purchases
- Recover valuable materials (steel, aluminum, copper, rare metals) for industrial reuse
- Improve road safety by removing structurally compromised old vehicles
- Create formal employment in the vehicle recycling industry
The policy applies to: Personal vehicles older than 20 years, Commercial vehicles older than 15 years, and any vehicle that fails the mandatory fitness test at the RTO. In Delhi NCR, stricter rules apply (10 years for diesel, 15 years for petrol).
Scrappage Benefits — Complete Breakdown
When you scrap your vehicle at a registered RVSF, you receive multiple stacked benefits:
Vehicle Scrap Value
Direct cash for the vehicle's metal content. Typical sedan/hatchback: ₹15,000-₹40,000 based on weight and current scrap metal rates. Check live rates on ScrapRates.in.
Certificate of Deposit (CoD)
4-6% of vehicle's ex-showroom price as a tradeable certificate. Use as discount on new vehicle, claim as road tax rebate, or sell to another buyer. Typical value: ₹5,000-₹50,000 based on original vehicle price.
25% Road Tax Rebate
On new vehicle purchase. For a ₹15L car with 12% road tax (₹1.8L), rebate = ₹45,000. For commercial vehicles with 50% road tax, rebate can be ₹2.5L+. Valid for 8 years (commercial) / 15 years (personal).
Manufacturer Discount
Major OEMs (Maruti, Tata, MG, Mahindra) offer ₹25,000-₹50,000 additional discount on CoD presentation. Combined with above benefits = ₹1L+ discount on a typical car purchase.
EV State Subsidy Bonus
If you replace your old ICE with an EV, additional state subsidy applies. Delhi: ₹30K extra. Maharashtra: ₹15K/kWh state subsidy. UP: ₹1L state subsidy. Stacks with FAME-III central subsidy.
Total Switch-to-EV Benefit
Scrap CoD + Road Tax Rebate + Manufacturer Discount + EV State Subsidy + FAME-III + 100% road tax waiver = ₹3-4 lakh effective discount on switching from old diesel to a new ₹15L EV.
Scrappage Process — Step by Step
- Visit a registered RVSF (Registered Vehicle Scrapping Facility) — find via Vahan portal or check our RVSF directory below
- Bring documents: Original RC, Insurance certificate, valid PUC, owner's Aadhaar/PAN, vehicle invoice (if available)
- Vehicle inspection — RVSF verifies vehicle ID, weighs the vehicle, and assigns scrap value based on current market rates
- Receive scrap quote — Compare with live ScrapRates.in rates to ensure fair value
- Sign deregistration paperwork — RVSF files RC cancellation with RTO on your behalf
- Receive payment + Certificate of Deposit — typically same-day cash or NEFT, plus printed CoD
- Submit CoD with new vehicle purchase — get 25% road tax rebate + manufacturer discount
- Old RC officially canceled — confirms with RTO record (no future tax liability)
Get Best Scrap Value via ScrapRates.in
Don't accept the first scrap quote from a single RVSF. Compare live scrap metal rates and verified buyers across India via our partner platform ScrapRates.in — the largest scrap dealer directory in India with 1,000+ verified scrap buyers.
- Live scrap metal prices — iron, copper, aluminum updated daily
- 1,000+ verified scrap dealers with ratings and contact info
- City-wise listings — find buyers in your local area
- Compare quotes — get 3-5 offers before choosing
- India + Bangladesh + UAE coverage
Mandatory Scrappage — Delhi NCR Rules
Delhi, Noida, Ghaziabad, Faridabad, Gurugram have stricter age caps than the rest of India:
| Region | Diesel Vehicle Limit | Petrol Vehicle Limit | EV Exemption |
|---|---|---|---|
| Delhi NCR | 10 years | 15 years | No age limit |
| Noida (UP-16) | 10 years | 15 years | No age limit |
| Ghaziabad (UP-14) | 10 years | 15 years | No age limit |
| Gurugram, Faridabad | 10 years | 15 years | No age limit |
| Other parts of India | 15 years (commercial) | 20 years (personal) | No age limit |
Get Free Scrappage + EV Switch Quote
Tell us your old vehicle and city. We'll connect you with verified RVSF (for scrap value) AND EV dealer (for switching benefits). Total estimated savings shared upfront.
- RVSF scrap value estimate
- CoD certificate calculation
- EV options under your budget
- Total ₹3-4L stacked savings breakdown
Major RVSF Centers in India
Government-registered Vehicle Scrapping Facilities across major cities:
Maruti Suzuki Toyotsu Recyclers
Cities: Delhi (Noida), Pune, Chennai, Bangalore, Hyderabad, Indore
India's largest RVSF network · OEM-backed
Tata Motors Recycling
Cities: Mumbai (Bhandup), Pune (Pirangut)
Tata-backed · Premium scrap value
CERO Reuse Recycle
Cities: Delhi NCR, Mumbai, Hyderabad, Bangalore
India's first private RVSF · Mahindra Group
MSTC Auction RVSFs
Cities: 50+ across India via mstcecommerce.com
Online vehicle scrappage auction
Hindustan Auto Recyclers
Cities: Chennai, Coimbatore, Madurai, Trichy
Tamil Nadu's leading RVSF
Greenmech Auto Recycling
Cities: Bangalore, Mysuru, Hubli
Karnataka's largest independent RVSF
Frequently Asked Questions
What is the National Vehicle Scrappage Policy?
India's policy (2021) provides incentives to scrap old polluting vehicles. Personal vehicles older than 20 years and commercial older than 15 years failing fitness must be scrapped at registered RVSFs. Owners get 4-6% CoD certificate + 25% road tax rebate on new vehicle.
How much can I get for scrapping my old car?
Typical sedan/hatchback: ₹15,000-₹40,000 in scrap value, plus 4-6% CoD certificate (₹2,000-₹15,000), plus 25% road tax rebate on new vehicle (₹50,000-₹2L). Visit ScrapRates.in for live scrap metal prices.
Do I have to scrap my old vehicle in India?
Mandatory if: (1) Vehicle fails fitness test, (2) Delhi NCR — diesel ≥10 yrs / petrol ≥15 yrs auto-deregistered. Outside Delhi NCR scrapping is voluntary — you can keep by paying Green Tax + passing fitness test every 5 years.
What is a Certificate of Deposit (CoD) in scrappage?
4-6% of vehicle's ex-showroom price as tradeable certificate. Use as discount when buying new vehicle, claim 25% road tax rebate, or sell to another buyer. Maximum CoD value capped at scrap value + 6%.
Where to scrap my old vehicle in India?
Visit registered RVSFs — 100+ across India. Major: Maruti Suzuki Toyotsu (Delhi/Pune/Chennai/BLR/HYD), Tata Motors Recycling (MUM/Pune), CERO (Delhi NCR/MUM/HYD/BLR). Compare via ScrapRates.in.
Is the 25% road tax rebate worth it?
Yes especially for high-value vehicles. ₹15L car (12% road tax = ₹1.8L) → 25% rebate = ₹45,000 saving. Commercial truck (50% road tax) → ₹2.5L+ saving. Valid for 8 yrs (commercial) / 15 yrs (personal).
Can I get scrappage benefits for an EV purchase?
Yes! Smartest move. Scrap old ICE + new EV = 4-6% CoD + 25% road tax rebate + EV state subsidy (Delhi/MH/UP up to ₹1.5L) + FAME-III (₹1.5L) + 100% road tax waiver = ₹3-4 lakh total benefit.