Over 4.3 Lakh Vehicles Scrapped Under India’s Vehicle Scrapping Policy Till January 30, 2026: MoRTH

According to a NITI Aayog report, the number of end-of-life vehicles (ELVs) in India is projected to reach nearly 50 million by 2030. This increase is attributed to the annual addition of over 2 crore vehicles, many of which will reach the end of their usable life. The report emphasizes the environmental impact of these older vehicles, as they contribute significantly to pollution levels.

Informal scrapping operations often do not follow environmental regulations, leading to improper handling of hazardous materials such as fuels and batteries. This lack of adherence to safety protocols can result in increased pollution and environmental degradation. The NITI Aayog report highlights that these informal scrappers typically offer higher prices, which can incentivize vehicle owners to bypass registered facilities that comply with environmental standards.

The Ministry of Road Transport and Highways (MoRTH) has proposed a 50% tax rebate for new vehicle purchases made after scrapping older vehicles that comply with BS-I or BS-II emission norms. This proposal aims to incentivize the replacement of older, polluting vehicles with newer, cleaner alternatives, thereby promoting a reduction in vehicular emissions and improving air quality.

The vehicle scrapping policy faces several challenges, including limited awareness among consumers, complex deregistration processes, and a weak financial viability of authorized scrappers. Additionally, many vehicle owners still prefer informal scrapping options due to better financial incentives, which undermines the effectiveness of the registered facilities and the overall policy goals.

Vehicle manufacturers are required to meet Extended Producer Responsibility (EPR) targets for scrapping end-of-life vehicles. This involves ensuring that old vehicles are properly disposed of at registered scrapping facilities. The government has introduced regulations that hold manufacturers accountable for the environmental impact of their products, promoting sustainable practices in vehicle disposal and recycling.