E-Paper
Sign In
India scraps only 350,000 of 12 million end-of-life vehicles, posing environmental risks
India’s Vehicle Scrappage Policy was introduced in 2021 to pull out old, polluting vehicles that pose road safety issues; they become increasingly difficult to operate and must be scrapped
- PUBLISHED: Wed 17 Jun 2026, 6:00 AM
Of the 12 million end-of-life vehicles (ELVs) on Indian roads in 2022, just a mere 350,000 were scrapped at the registered facilities between August 2022 and July 2025, highlighting the enormous challenges confronting the sector.
NITI Aayog, the apex public policy think-tank of the Indian government, has warned about the weak monitoring infrastructure for vehicle scrapping in the country.
Recommended For You
India’s ELV stock is expected to touch 50 million by 2030, “underscoring the urgent need for a robust policy and regulatory framework for their sustainable management,” the NITI Aayog had stated earlier. Their growing numbers pose multidimensional challenges, both for road safety and environmental issues.
Stay up to date with the latest news. Follow KT on WhatsApp channels.
“The old and unfit vehicles raise road safety issues, as they become increasingly difficult to operate and control and therefore must be declared end of life based on robust testing,” a NITI Aayog report mentioned recently.
“Emissions from older vehicles are significantly more polluting, up to eight times more in the case of BS-I vehicle as compared to BS-VI emission standard vehicle and therefore there is a strong case to replace them with less polluting BS-VI or electric vehicles," it added.
Difficulty in tracking vehicles
The government think-tank also pointed out that the digital systems used by different ministries lack communication, making it difficult to track a vehicle from deregistration to final scrapping.
India’s Vehicle Scrappage Policy was introduced in 2021 to pull out old, polluting vehicles. Automated testing stations were set up to conduct fitness tests for private vehicles older than 15 years and commercial vehicles that were older than 10 years. But the testing stations and registered vehicle scrapping facilities are difficult to access in many parts of India, so many prefer to opt for dismantlers from the unorganised sector, who offer more money as they have lower overheads.
NITI Aayog also urged the transport ministry to explore legal obligation on vehicle owners to initiate compulsory deregistration of ELVs “to ensure responsible disposal and formal processing.”
Automobile manufacturers in India, however, told NITI Aayog that it is very difficult to trace vehicles they sold to consumers about 20 to 25 years earlier because of a change in ownership.
Automated testing stations were set up to identify unfit vehicles, but according to some auto industry analysts, a majority of the vehicles are transformed into ‘fit vehicles’ after the tests, instead of being referred to scrapping.
Another factor that NITI Aayog highlighted was the absence of eco-design guidelines for automobile manufacturers, which made the dismantling and recycling of vehicles a tough challenge.
The vehicle scrap business has also complained of the high tax rates for used auto parts and refurbished vehicles, which discourages the emergence of a recycling ecosystem.
