The Ministry of Road Transport and Highways has launched the Voluntary Vehicle Modernization Program (VVMP) aimed at phasing out unfit, polluting vehicles across India. This initiative, known as the Vehicle Scrapping Policy, seeks to create a sustainable ecosystem by encouraging the scrapping of old vehicles through a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs). With over 60 RVSFs operational in 17 States and Union Territories, and 75 ATSs functioning across 12 States and Union Territories, the program is set to expand further, with many more facilities in the pipeline.
In a move to bolster this policy, Union Minister for Road Transport & Highways, Nitin Gadkari, engaged in a detailed discussion with a CEOs’ delegation from the Society of Indian Automobile Manufacturers (SIAM) at Bharat Mandapam. The meeting, which was also attended by Ministers of State for Road Transport and Highways, Harsh Malhotra, and Ajay Tamta, focused on promoting the scrapping of privately owned commercial and passenger vehicles. The goal is to replace the old, polluting fleet with newer, less polluting models.
Recognizing the importance of fleet modernization and the circular economy, several leading commercial and passenger vehicle manufacturers have agreed to offer limited-period discounts to incentivize the scrapping of end-of-life vehicles. These discounts will be available for vehicle owners who present a Certificate of Deposit (Scrappage Certificate) as proof of scrapping their old vehicles.
Commercial Vehicles: Commercial vehicle manufacturers such as Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu have announced discounts equivalent to 3% of the ex-showroom price for a commercial cargo vehicle with a gross vehicle weight (GVW) of more than 3.5 tonnes, provided the vehicle was scrapped by the owner within the last six months. For vehicles with a GVW of less than 3.5 tonnes, a discount of 1.5% will be offered. Additionally, those purchasing vehicles against a traded Certificate of Deposit for a scrapped commercial vehicle will receive a discount equivalent to 2.75% of the ex-showroom price for vehicles with a GVW over 3.5 tonnes and 1.25% for vehicles under 3.5 tonnes. This scheme may also be applicable to buses and vans.
Passenger Vehicles: Passenger vehicle manufacturers, including Maruti Suzuki India Ltd, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India, and Skoda Volkswagen India, have offered discounts of 1.5% of the ex-showroom price of a new car, or Rs 20,000—whichever is less—against the scrapping of a passenger vehicle by the owner within the last six months. The details of the scrapped vehicle will be linked to the Vahan system. Manufacturers may also offer additional discounts on selected models. Notably, Mercedes Benz India has announced a flat discount of INR 25,000, which will be provided in addition to all existing discounts.
These discounts from Original Equipment Manufacturers (OEMs) are in addition to the scrap value provided by RVSFs and the existing incentives offered by the government, including motor vehicle tax concessions, waiver of registration certificate fees, and waiver of liabilities linked to the Certificate of Deposit (CD) under the Vehicle Scrapping Policy.
The collaboration between the government and the automobile industry aims to ensure safer, cleaner, and more efficient vehicles on Indian roads, contributing to the nation’s environmental and economic goals.
