India's scrappage policy changes how fleets should treat older trucks and buses. Commercial vehicles past 15 years are not banned outright, but they must keep passing fitness tests, and those that fail can be declared end-of-life. At the same time, scrapping an old vehicle at a registered facility can bring a road tax concession and other benefits on a new one. The smart move is to plan renewals early, not after a failed test. This guide explains the rules and process, and how owners plan fleet renewal with vehicle records in HVI.
Vehicle Scrappage Policy India 2026: Guide for Fleet Owners
What the policy means for older commercial vehicles, how the scrapping process and certificate of deposit work, the incentives available and how to plan fleet renewal.
What the Policy Means for Fleet Owners
The policy is based on fitness rather than age alone, but age now carries real costs and decisions.
Fitness decides
Older vehicles can keep running only while they pass fitness and emission tests.
Testing is automated
Automated testing stations make it harder for poorly kept vehicles to pass.
Old vehicles cost more
Higher fitness and renewal fees add to the cost of keeping older vehicles.
Scrapping brings benefits
Scrapping at a registered facility can unlock concessions on a new vehicle.
How Scrapping Works at an RVSF
Only a Registered Vehicle Scrapping Facility can issue the certificate that unlocks benefits. A local scrap dealer cannot.
Find an RVSF
Choose a registered scrapping facility near you.
Submit documents
Registration certificate, owner ID and other papers asked for.
Hand over the vehicle
The RVSF dismantles it safely and pays the scrap value.
Get the certificate
A certificate of deposit is issued and the vehicle is deregistered.
Use it when buying
Present the certificate when registering the new vehicle.
Incentives for Scrapping
Benefits depend on central rules, state notifications and manufacturers. Always confirm what applies in your state before acting.
| Incentive | What it is | Points to check |
|---|---|---|
| Road tax concession | A concession on motor vehicle tax for a new transport vehicle registered against a certificate of deposit | States have notified concessions of up to 15% for transport vehicles, for a limited period |
| Registration fee waiver | The registration fee on the new vehicle can be waived | Must be claimed with the certificate of deposit |
| Scrap value | Payment from the RVSF for the old vehicle | Depends on weight, condition and the facility |
| Manufacturer offers | Some makers give a discount against a certificate of deposit | Varies by brand and changes over time |
Rules and incentives are updated from time to time and differ by state. Check the latest notifications from MoRTH and your state transport department before deciding.
Know Every Vehicle's Age, Fitness and Cost
HVI keeps registration and fitness dates, inspection results and maintenance costs for every truck and bus, so you can see which older vehicles to keep, sell or scrap.
Keep, Sell or Scrap?
For each older vehicle, look at its condition, its running cost and what each option brings in.
- Vehicle passes fitness comfortably
- Maintenance cost per km is still reasonable
- It has steady, profitable work
- Still has good life and fitness left
- Resale value is better than scrap value
- You want a newer vehicle for your routes
- Repairs cost more than the vehicle earns
- It is unlikely to pass the fitness test
- You plan to buy new and can use the incentives
Fleet Age and Renewal View in HVI
A sample view of a mixed fleet. Seeing age, fitness and running cost together makes renewal planning straightforward.
| Vehicle | Age | Fitness valid until | Maintenance cost per km | Plan |
|---|---|---|---|---|
| TRK-05 | 6 years | Not due soon | Rs 2.1 | Keep |
| TRK-12 | 13 years | Renewal due in 4 months | Rs 4.8 | Plan replacement |
| BUS-03 | 16 years | Failed last test | Rs 7.6 | Scrap at RVSF |
Scrappage Policy FAQs
Must all trucks over 15 years old be scrapped?
No. Commercial vehicles over 15 years can keep running as long as they pass fitness and emission tests and renew their registration and fitness, usually at higher fees. Vehicles that fail can be declared end-of-life and should be scrapped at a registered facility.
What is a certificate of deposit?
It is the document issued by a Registered Vehicle Scrapping Facility when you hand over a vehicle for scrapping. You present it when registering a new vehicle to claim benefits such as a road tax concession and registration fee waiver.
What incentives do fleet owners get for scrapping?
Benefits can include a road tax concession on a new transport vehicle, a registration fee waiver, the scrap value paid by the RVSF and manufacturer discounts. Exact incentives depend on your state and change over time, so check current notifications.
Can I scrap my truck at a local scrap dealer?
A local dealer cannot issue a valid certificate of deposit, so you would lose the incentives and may face issues with deregistration. Use a Registered Vehicle Scrapping Facility for commercial vehicles.
How should a fleet plan for older vehicles?
Track each vehicle's age, fitness dates and running costs, and plan replacements before fitness tests become a problem. Teams that keep records in HVI see this at a glance. Book a demo to see renewal planning.
Plan Fleet Renewal Before Fitness Tests Decide for You
Track age, fitness dates and running costs for every truck and bus in HVI. Decide early which vehicles to keep, sell or scrap, and make the most of available incentives.
