The Ministry of Road Transport and Highways is championing a transformative step in vehicle sustainability with the launch of the Voluntary Vehicle Modernization Program, also known as the Vehicle Scrapping Policy. This initiative aims to build a robust ecosystem for retiring outdated and polluting vehicles through a network of Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs). Currently, over 60 RVSFs and 75 ATSs are operational across various states and union territories, with more facilities on the horizon.
In a recent event at Bharat Mandapam, Union Minister for Road Transport & Highways, Shri Nitin Gadkari, engaged with a delegation from the Society of Indian Automobile Manufacturers to discuss the program’s impact. The conversation highlighted a collective effort to phase out older, less efficient vehicles and replace them with modern, eco-friendly alternatives.
To further incentivize this transition, both commercial and passenger vehicle manufacturers have stepped up with compelling discounts. For a limited period two years for commercial vehicles and one year for passenger vehicles manufacturers are offering attractive discounts in exchange for a scrappage certificate. These discounts are designed to encourage the disposal of older vehicles, ensuring that cleaner, safer, and more efficient vehicles take their place on the roads.
Commercial Vehicles
Leading manufacturers such as Tata Motors, Volvo Eicher, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu are providing discounts of up to 3% on the Ex-Showroom Price for commercial cargo vehicles over 3.5 tonnes GVW when scrapped within the last six months. For vehicles under 3.5 tonnes GVW, the discount is up to 1.5%. Additionally, purchasers who trade in a scrapped commercial vehicle can receive discounts of 2.75% and 1.25% respectively on their new vehicle purchase.
Passenger Vehicles
For passenger vehicles, manufacturers including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, Kia, Toyota, Honda, MG Motor, Renault, Nissan, and Skoda Volkswagen are offering discounts of 1.5% of the Ex-Showroom price or Rs 20,000 whichever is lower for vehicles scrapped in the past six months. Mercedes Benz India is enhancing this offer with a flat discount of INR 25,000 on top of existing offers. Notably, these discounts are applicable solely for vehicles that are scrapped, not exchanged.
These incentives are in addition to the benefits provided by RVSFs, such as the scrap value of the vehicle, tax concessions, registration fee waivers, and other liabilities under the Vehicle Scrapping Policy. This comprehensive approach aims to drive a significant shift towards a greener, more efficient transportation network in the country.

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