Vehicle Scrappage Policy Benefits in India – Here is How You Can Get Discounts on New Car Purchase

In 2021, the Government of India introduced the Vehicle Scrappage Policy to phase out old and unfit cars, with the twin goals of reducing pollution and boosting the adoption of modern, safer vehicles. Alongside the environmental and safety benefits, the scrappage scheme also brings direct financial incentives for car buyers.

For new car buyers, this is a golden opportunity to upgrade their old vehicle and enjoy manufacturer-backed discounts and government concessions — and on Carbae, you can see these offers live on the models you’re considering.

Key Benefits of the Vehicle Scrappage Policy

1. Manufacturer Discounts on New Cars

   • Carmakers including Maruti Suzuki, Hyundai, Tata, Mahindra, Kia, Toyota, Honda, Skoda, Volkswagen, MG and others have agreed to offer discounts.

   • The official benefit: 1.5% of ex-showroom price or ₹20,000 (whichever is lower) when you scrap your old car.

   • Some brands go further. For instance:

     • Maruti Suzuki: Up to ₹25,000 scrappage scheme benefit (as seen in Carbae’s September offers).

2. Additional Value from Scrapping Centres

   • Scrap value up to 4–6% of ex-showroom price of your new car.

3. Government Concessions

   • Waiver of registration fees on your new car.
   • Road tax concessions up to 25% from state governments.

4. Savings Beyond Discounts

   • Avoid higher fitness test charges and green cess (10–15%) on older vehicles.
   • Save on costly re-registration fees for vehicles beyond 15 years.

Together, these benefits can add up to tens of thousands of rupees in savings, making it easier to switch to a modern, efficient, and safer car.

How to Avail Scrappage Benefits

The process of scrapping your car is straightforward:

1. Locate a Registered Vehicle Scrapping Facility (RVSF) on the Parivahan portal.

2. Submit required documents: RC, ID proof, address proof, bank details, and ELV (End-of-Life Vehicle certificate).

3. Get your car scrapped responsibly at the facility.

4. Receive a Scrappage Certificate which can be used to:

   • Avail discounts from car manufacturers.
   • Get road tax concessions and registration fee waivers.

Conclusion

The Vehicle Scrappage Policy is more than just a step towards cleaner mobility — it’s an opportunity for car buyers to save significantly on their next purchase. Whether it’s Maruti Suzuki’s ₹25,000 scrappage offer, Mercedes-Benz’s flat discount, or government tax waivers, the savings are real and substantial.

And with Carbae’s platform, you can see these benefits clearly on every model and directly upgrade your old car for a brand-new one — easily, transparently, and at the best possible value.

Carbae Advantage – See and Avail Scrappage Offers Easily

At Carbae, we make the scrappage benefits transparent and accessible. On every car model page, you can view:

• Exact scrappage discount available on that model.
• Exchange and loyalty offers from dealers.
• On-road prices with all savings applied.

This means you don’t have to calculate or chase multiple dealerships — Carbae gives you the final price clarity upfront, helping you make the best car buying decision.