Junk Your Old Car And Get 5% Rebate For New Under Govt's New Vehicle Scrapping Policy - Viral Bake

In a step to ease the burden of the scrapping of the old vehicle under the Vehicle Scrapping Policy and help people save money, Union Minister Nitin Gadkari has said that automakers will give about a 5% rebate on the new purchase.

For the unaware, the new vehicle scrappage policy was announced in the 2021-22 Budget. The policy requires personal vehicles to undergo a fitness test after 20 years and commercial vehicles go under the same test after the completion of 15 years. If the reports days that vehicle doesn’t adhere to the set pollution norms, the person can either scrap the old vehicle or pay more tax on it.

Automobile manufacturers will provide about 5% rebate on new car purchases” to the consumers in lieu of scrapping of the old, Road Transport, Highways and MSMEs Minister Gadkari told PTI.
Source – Cars24

“There are four major components of the policy…Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required through out in the country and we are working in that direction,” Gadkari said.


In the coming days, automated test for vehicles will come into being for health check-up of vehicles. Driving vehicles that fail to clear automated tests will attract huge penalties and also be impounded.

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Apart from bringing down pollution, the new step will bring a boom in the automobile sector with an increase in demand. The minister himself said that the automobile sector will see a growth of 30% in the coming years.

Gadkari said: “Automobile industry turnover which is Rs 4.5 lakh crore at present is likely to swell to Rs 10 lakh crore in years to come with India becoming an automobile hub.”

Also, the new rule might prompt people to move towards electric car, better mileage of vehicles besides promoting green fuel. All this is required to help the government control pollution and meet Sustainable Development Goals.

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“This policy will result in increase in vehicle demand which in turn would boost revenue. Also, ancillary industries would come up in large numbers thriving on junk vehicles,” the minister said. The minister said initially about one crore polluting vehicles would go for scrapping.


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