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The Vehicle Scrappage Policy 2021: Building a Cleaner Fleet

Launched as the Voluntary Vehicle Fleet Modernization Program (VVMP) in August 2021, the Vehicle Scrappage Policy forms the foundation of India’s modern recycling ecosystem. It aims to phase out unfit, polluting vehicles and replace them with cleaner, safer models.

Key Features:

• Mandatory Fitness Tests: Private vehicles older than 15 years and commercial vehicles over 10 years must pass automated fitness and emission tests at Registered Vehicle Scrapping Facilities (RVSFs). Failure to pass means mandatory scrapping.
• Owner Incentives: Vehicle owners can earn up to 5% discount on new purchases and 15–25% road tax rebates after scrapping their old vehicles. In 2025, this policy drove a sharp increase in vehicle recycling across India.
• Economic Boost: The initiative is projected to phase out 9.7 million unfit vehicles, generate ₹40,000 crore in GST, and create 7 million jobs in the recycling sector.

According to Union Minister Nitin Gadkari, vehicle scrapping is a “progressive step toward modernization,” expected to reduce component costs by 25% and align India with global green standards.

2025 Policy Updates: Stricter Rules and Regional Implementation

In 2025, India introduced stricter enforcement to accelerate vehicle phase-outs, particularly in high-pollution zones.

Key Developments:

• Nationwide Fitness Tests: From June 1, 2025, private vehicles over 15 years must undergo mandatory fitness certification. Diesel commercial vehicles have a 10-year limit, while petrol ones can operate up to 15 years.
• Delhi-NCR Enforcement: Fuel stations have stopped serving diesel vehicles over 10 years and petrol ones over 15 years. This move expanded across Gurugram and Noida, increasing scrappage rates dramatically.
• Legal Clarity: The Supreme Court upheld emission-based restrictions, linking deregistration directly to vehicle fitness results instead of blanket bans.

Minister Gadkari’s broader vision includes 27% ethanol blending by 2025 and a complete petrol-diesel phase-out by 2034, saving India ₹22 lakh crore annually in fuel imports..

For vehicle owners, maintaining aging cars has become expensive due to frequent PUC failures, fines, and higher taxes. Scrapping through CrushCar helps avoid these costs while ensuring legal, transparent, and eco-friendly disposal.

EV Scrap Policy 2025: Powering the Electric Future

As India aims for 30% EV adoption by 2030, new rules address the recycling of electric vehicles (EVs). The Environment Protection (End-of-Life Vehicles) Rules, 2025, effective from April 1, have introduced key measures for sustainable EV management.

Highlights:

• Extended Producer Responsibility (EPR): Automakers must collect and recycle a portion of end-of-life vehicles annually, issuing recycling certificates via a centralized digital system.
• Battery Recycling: EVs require specialized dismantling to recover lithium-ion batteries safely. The target is 90% recovery by 2030.
• Incentive Link: Scrapping an old petrol or diesel car can qualify owners for EV discounts under the FAME-III subsidy program.

This framework has created a new ₹50,000 crore EV recycling market, driving innovation among recyclers like CrushCar, which offers battery-safe dismantling and material recovery services.

Impact on Stakeholders

The Road Ahead: Why Now Is the Time to Scrap

India’s scrapping revolution is central to achieving net-zero emissions by 2070. With policies promoting ethanol blending, EV adoption, and circular economy practices, the shift toward sustainable mobility is unstoppable.

For car owners, scrapping now means compliance, better value, and contributing to a cleaner nation. Whether your vehicle is 10 years old, flood-damaged, or unfit, CrushCar offers certified recycling, transparent pricing, and doorstep pickup across India.

With 45,000+ satisfied customers and 31,000 Certificates of Destruction issued, we’re proud to lead India’s green mobility movement.