Archive · 25 Jan 2026
85,000 Vehicles Benefit from Scrappage Policy
The Indian government has a policy to encourage people to scrap old vehicles and buy new ones.
This policy offers benefits like tax rebates and discounts.
So far, 85,000 vehicle owners have taken advantage of these benefits, amounting to ₹450 crore in incentives.
Many states and automobile manufacturers are also offering discounts.
The government has set up special facilities to scrap old vehicles and test their fitness.
The goal is to reduce pollution, save fuel, and have more modern vehicles on the road.
85,000 vehicle owners have availed incentives worth ₹450 crore under the voluntary vehicle scrappage policy.
27 states and UTs offer tax rebates of up to 25% on non-transport vehicles and up to 15% on transport vehicles.
22 automobile manufacturers provide 1.5–3% discounts on ex-showroom prices against scrappage certificates.
Nearly 3.6 lakh vehicles have been scrapped, including 1.6 lakh government-owned vehicles.
123 out of 180 approved registered vehicle scrapping facilities are operational, along with 160 automated testing stations.
- Who
- Vehicle owners, state governments, automobile manufacturers
- What
- Implementation of the voluntary vehicle scrappage policy
- When
- Ongoing, with recent updates from the Ministry of Finance
- Where
- Across India, with 27 states and UTs offering tax rebates
- Why
- To reduce emissions, modernise the vehicle fleet, and boost auto sales
- Number of Vehicles Benefited
- 85,000
- Total Incentives Availed
- ₹450 crore
- States Offering Tax Rebates
- 27
- Registered Scrapping Facilities
- 123 operational out of 180 approved
- Total Vehicles Scrapped
- 3.6 lakh
- Government Vehicles Scrapped
- 1.6 lakh
- Manufacturer Discounts
- 1.5–3% on ex-showroom prices
- Automated Testing Stations
- 160 operational out of 407 sanctioned