The Vehicle Scrappage Policy, 2021 focuses on phasing out old and unfit vehicles. It aims to de-register private cars over 20 years old and commercial vehicles over 15 years old.
What is Vehicle Scrappage Policy in India
The Vehicle Scrappage Policy is a government-funded programme to scrap old and unfit vehicles and replace them with modern and new vehicles on Indian roads. The primary goal of the policy is to create an ecosystem for phasing out unfit and polluting vehicles to achieve a lower carbon footprint in the country.
Beginning April 1, 2023, fitness testing of Heavy Commercial Vehicles (HCVs) shall be conducted only through Automated Testing Stations (ATSs). For other types of Commercial Vehicles (CVs) and Private Vehicles (PVs), the fitness testing shall also be conducted through the ATS and begin on June 1, 2024.
Commercial vehicles and private vehicles older than 15 and 20 years, respectively, shall be scrapped if they fail the fitness test. If a vehicle fails the fitness test, it shall be defined as an ELV (End-of-Life Vehicle).
What is the aim of Vehicle Scrappage Policy
Here are some of the key takeaways of the vehicle scrappage scheme.
1.) Reduce pollution by scrapping vehicles without valid fitness and registration.
2.) Improve passenger, road and vehicular safety.
3.) Generate employment in the automobile industry.
4.) Formalise the current informal vehicle scrappage industry.
5.) Improve fuel efficiency and reduce maintenance costs for vehicle owners.
6.) Increase availability of low-cost raw materials for automotive, steel and electronics industry.
Benefits of the Vehicle Scrappage Policy
Here’s a list of potential benefits of the new vehicle scrap policy for the economy, automobile sector, vehicle owners, and others.
1.) Scrapping unfit vehicles will result in less air pollution and better air quality.
2.) With old vehicles being scrapped, the demand for new vehicles will rise as the old ones will need to be replaced by new ones. More than 51 lakh light motor vehicles (private and commercial) are more than 20 years old.
3.) Overall, the automobile sector will benefit from the new scrappage policy leading to more job opportunities. For example, new vehicle scrapping centres will need manpower.
4.) New advanced vehicles will be comparatively safer. For example, new cars come with superior safety features.
5.) The recycling industry will also be more active leading to higher revenue.
6.) Vehicle owners might receive tax benefits as an incentive to scrap an old vehicle.
7.) Vehicle owners might also get the best price for car scrappage for workable parts such as tyres.
What are the incentives for scrapping old vehicles?
Here are the incentives when you scrap old vehicles.
1.) Automatic deregistration of the RC and automatic clearance of all outstanding challans
2.) No registration charges: Upon declaring the Certificate of Deposit, the registration fees for the new vehicle are waived.
3.) Concession on road tax: State governments may offer a concession on the road tax on the new vehicle. The concession can be up to 25% for non-transport vehicles and 15% for transport vehicles.
4.) Avail a discount: After scrapping the vehicle, the owner may receive around 4 to 6% discount on the new vehicle’s cost (ex-showroom).
How to scrap a car in India?
Here is the vehicle scrapping process in India.
Step 1: Contact the scrapping centre
Step 2: Complete the documentation
Step 3. Valuation of legal inspection done by the scrapping centre
Step 4. Agreed scrap value of the vehicle will be deposited to the owner account
Step 5: Get the scrappage certificate
Call the authorized recycler or reach out to them via our websites.
Get the Used Parts of Vehicle-
1.) Get the all types of car spare parts for any make and model
2.) All our spare parts are genuine and reliable
3.) All parts are quality tested
4.) We provide the Doorstep deliver anywhere in India
Fix an appointment with Select Auto Scrap we are a Govt authorized scrap centre in Chandigarh and , you can drive the car to our scrapyard or request us to collect the car from your place. For more info Please contact us at-+ 91 93560 22555 or visit our website-https://www.selectautoscrap.com/