Overview
India’s vehicle scrappage policy was meant to remove ageing, polluting cars and two‑wheelers. In practice, only about 1‑1.2 lakh vehicles are scrapped each year, roughly 4,000 per week, because the incentive – a road‑tax rebate of 4‑6% of the ex‑showroom price – is too weak to persuade owners.
Key Developments
- Only 3% of end‑of‑life vehicles (ELVs) have been formally scrapped in the last three years, while an estimated 12 million ELVs remain on Indian roads (NITI Aayog).
- About 35,000 ELVs pass through registered scrapping facilities; the rest are dismantled informally, often causing environmental damage.
- Retrofitting – replacing the internal combustion engine with an electric power‑train while keeping the chassis and body – can save owners ₹50,000‑₹70,000 for two‑wheelers and ₹5‑10 lakh for four‑wheelers compared with buying a new EV.
- Regulatory gaps: formal scrapping is the only recognised route; retrofitting operates in a legal grey zone across most states.
Important Facts
Retrofitting cuts the carbon footprint because it avoids the emissions from steel production, chassis casting, and full‑vehicle assembly. It also prevents hazardous waste – such as engine oil and coolant – from leaking into soil and groundwater in informal junkyards. Internationally, the U.K. and several U.S. states have established legal frameworks for EV conversions, creating a growing aftermarket industry.
Key institutional actions needed:
- ARAI approval and licensing for retrofitters.
- Involvement of OEMs to provide certified kits or partner with garages.
- Clear registration and inspection protocols from RTOs.
Exam Relevance
The issue touches multiple GS papers. Environment and climate policy (GS3) are evident in the pollution‑reduction goal. Economic implications – potential s