India May Have 5 Crore End-of-Life Vehicles by 2030: NITI Aayog Report

India adds over 2 crore vehicles each year, increasing the number of vehicles reaching the end of their usable life. According to a NITI Aayog report published in January 2026, India had approximately 10 million ELVs in circulation in 2020. The cumulative number of ELVs is expected to increase to nearly 23 million by the end of 2025 and is projected to reach close to 50 million by 2030."

The report notes that older vehicles contribute to higher emission levels. Data cited in the report shows that pre-BS VI vehicles emit up to eight times more pollutants per kilometre than BS VI vehicles.

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Most ELVs in India are dismantled by the informal sector. These operations usually do not follow processes for handling fuels, batteries, refrigerants and other regulated materials.

The report states that informal scrappers often offer Rs 15,000 to Rs 20,000 more for a mid-size passenger vehicle than registered scrapping facilities. This difference, along with shorter processing time, influences vehicle owners. Informal scrapping does not provide certificates required for deregistration or access to incentives.

As of September 2025, India had 156 Automated Testing Stations (ATS) operating across 16 states and Union Territories. Most of these stations are located in a few states. Based on the number of vehicles and testing rules, the report says around 500 ATS will be required by 2027, which shows a gap in availability.

The number of Registered Vehicle Scrapping Facilities (RVSFs) has gone up, but many of them are not being used fully. This is mainly because fewer vehicles are coming in for scrapping and many owners continue to use informal scrappers.

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End-of-life vehicles contain materials that can be reused. The report estimates that vehicles made between 2005 and 2023 could provide about 98 million tonnes of steel. Using this recycled steel could help cut around 43 million tonnes of CO₂ emissions.

To increase recycling, the Extended Producer Responsibility (EPR) rules notified in 2025 require vehicle manufacturers to meet steel recycling targets. These targets start at 8% between 2025 and 2030 and increase to 18% from 2035 onwards.

The report identifies four main issues affecting the ELV ecosystem: limited testing and scrapping infrastructure, weak financial viability of authorised scrappers, complex deregistration processes and low consumer awareness.