Understanding India's New Car Scrapping Policy and Its Impact on the Automotive Industry
- THE CREATIVE VAULT OFFICIAL
- Aug 7
- 2 min read
If you own an old car or are planning to buy a new one, the Indian government’s new Vehicle Scrapping Policy can help you save money. This policy encourages people to scrap old, polluting vehicles and buy new, cleaner ones.
Here’s everything you need to know
What is the Vehicle Scrapping Policy?
The government wants to remove old, unsafe, and highly polluting vehicles from the roads. If your car or bike is too old (more than 15 years for petrol vehicles and 10 years for diesel vehicles), you can voluntarily scrap it and get benefits like:
- Discounts on new cars
- Road tax rebates (reduction in tax)
- Money from scrapping your old vehicle
This helps reduce pollution, improve road safety, and boost the automobile industry.
What is a Certificate of Deposit?
When you scrap your old vehicle at an authorized scrapping center, you get a "Certificate of Deposit" (CD). This certificate proves that you have scrapped your old vehicle and can be used to claim benefits like:
- Discounts on road tax for your new vehicle
- Discounts from car manufacturers
Road Tax Discounts Across States (Highest to Lowest)
Different states offer different discounts on road tax if you show your Certificate of Deposit. Here’s a list from highest to lowest discount:
State & Road Tax Discount
Maharashtra - 25%
Uttar Pradesh - 15%
Karnataka - 25%
Gujarat - 15%
Delhi - 15%
Tamil Nadu - 10%
Kerala -10%
Punjab - 5%
The above percentage is indicative and actual may differ - Please verify the percentage with your state authorities *
Car Manufacturers’ Discounts
Many car companies are offering extra discounts if you show your Certificate of Deposit. Here are some offers:
- Maruti Suzuki – Up to ₹50,000 discount + exchange bonus
- Tata Motors – ₹30,000 to ₹45,000 discount
- Hyundai – Up to ₹40,000 discount
- Mahindra – ₹25,000 to ₹35,000 discount
- Toyota – ₹30,000 discount + free service package
-Mercedes-₹25,000 discount
*Actual discounts might vary or change , please contact your nearest dealer for more information
How to Scrap Your Old Vehicle?
1. Find an authorized scrapping center (Govt. approved).
2. Submit your old vehicle with necessary documents (RC, ID proof).
3. Get your Certificate of Deposit (CD) after scrapping.
4. Use the CD to buy a new car with discounts.
Final Thoughts
The new scrapping policy is a great way to:
✔ Get rid of old, polluting vehicles
✔ Save money on new cars
✔ Reduce pollution and improve road safety
If your car is too old, consider scrapping it and taking advantage of these benefits!
Would you like help finding a scrapping center near you? Let us know in the comments!
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