Analysis

Feeding on scraps: India’s vehicle scrapping policy finds few takers

Raghav Mahobe

December 05, 2023 | 13 Min Read

India’s vehicle scrapping policy was meant to introduce the concept of circularity to the country’s Rs 8,70,000 crore auto industry and help decrease polluting vehicular emissions. Two years on, however, the scrapping of end-of-life vehicles is still a rarity.

In March 2021 when the Ministry of Road Transport and Highways (MoRTH) announced its vehicle scrapping policy, it was the latest arrow in India’s quiver in the fight against climate change.

Aimed at reducing the number of old and polluting vehicles in the country, the policy introduces the concept of circularity in India’s Rs 8,70,000 crore automotive industry by recycling components from unfit vehicles for use in the production of new ones.

According to government estimates, the pollution caused by end-of-life vehicles (ELVs) is enormous. There are around 4.5 million such medium and heavy commercial vehicles like trucks and buses plying on India’s roads. For light vehicles, such as cars and taxis, this number stands at 7.5 million. These numbers are only expected to rise further, with India expected to have about 22.5 million ELVs by 2025, according to estimates from the auto industry body Society of Indian Automobile Manufacturers (SIAM).

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