Vehicle Scrapping Policy launched with manufacturer discounts

This is in response to Voluntary Vehicle Modernization Program, also known as the Vehicle Scrapping Policy, aimed at phasing out old, polluting vehicles across India.

Numerous commercial and passenger vehicle manufacturers have committed to offering substantial discounts to incentivise the scrapping of older vehicles. This initiative is part of a broader effort to replace outdated, polluting fleets with newer, more environmentally friendly models.

This is in response to Voluntary Vehicle Modernization Program, also known as the Vehicle Scrapping Policy, aimed at phasing out old, polluting vehicles across India. This initiative is designed to foster a cleaner and more efficient transportation ecosystem through the establishment of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs).

Currently, over sixty RVSFs and seventy-five ATSs are operational across multiple states and Union Territories, with more planned in the near future.

Discounts for Commercial Vehicles

Several major commercial vehicle manufacturers, including Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu, have announced significant discounts.

Buyers can now receive:

-3% off the Ex-Showroom Price for new commercial cargo vehicles if they scrap a vehicle with a Gross Vehicle Weight (GVW) of more than 3.5 tonnes within the last six months.
-1.5% off the Ex-Showroom Price for new commercial cargo vehicles if they scrap a vehicle with a GVW of less than 3.5 tonnes within the last six months.
-Discounts are available for those purchasing against a Traded Certificate of Deposit (Scrappage Certificate), including:

-2.75% off the Ex-Showroom Price for scrapping a vehicle over 3.5 tonnes GVW.
-1.25% off the Ex-Showroom Price for scrapping a vehicle under 3.5 tonnes GVW.

This discount scheme may also extend to buses and vans.

Discounts for Passenger Vehicles

Leading 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:

-1.5% off the Ex-Showroom Price of a new car or up to Rs 20,000, whichever is less, for vehicles scrapped in the last six months.
-Mercedes Benz India has introduced a flat discount of INR 25,000, which is additional to existing offers.

-Manufacturers may offer further discounts on specific models, and the scrapping discount will take precedence over exchange discounts.

Additional incentives

These discounts are in addition to the benefits provided by RVSFs, including scrap value, motor vehicle tax concessions, waiver of registration fees, and liability waivers under the Vehicle Scrapping Policy. These measures aim to support the transition to cleaner and more efficient vehicles, ultimately contributing to a reduction in vehicular pollution and an enhancement of road safety across the country.