Gujarat Has 41 lakh Vehicles Over 15 Years Old as Scrappage Policy Struggles

Gujarat has more than 41.20 lakh (4.12 million) vehicles that are over 15 years old, according to official figures, even as the state government once again announces a vehicle scrappage policy. Poorly maintained vehicles can pose a risk to passengers, officials say. They add that older vehicles can also threaten the environment through higher emissions.

To encourage owners to send them to the scrapyard, the government is offering road tax concessions.

Ahmedabad district accounts for the largest share, with 20.58 lakh (2.058 million) such vehicles, roughly half the state total. Despite stricter rules and higher fees, old vehicles remain common on the state’s roads, and the policy has so far had limited effect.

Ahmedabad Leads, with Rajkot, Surat and Vadodara Following

Old vehicles are concentrated in the state’s major cities. After Ahmedabad, Rajkot has about 7.36 lakh (736,000) old vehicles, Surat has about 2 lakh (200,000) and Vadodara has more than 1.35 lakh (135,000).

The state-wide figure includes more than 6.34 lakh (634,000) cars, about 1.76 lakh (176,000) trucks, more than 1.11 lakh (111,000) tractors and more than 1.34 lakh (134,000) passenger rickshaws. All of these add to the environmental burden.

What the Government Has Done So Far

The Gujarat government has announced a concession of up to 50% on motor vehicle (road) tax for owners who scrap an eligible old vehicle and buy a new one. The concession is claimed when the new vehicle is registered, against a valid Certificate of Deposit issued after the old vehicle is officially scrapped. It cannot be claimed more than once against the same scrapped vehicle.

Separately, government-owned vehicles older than 15 years are being scrapped in phases. These include State Transport (ST) buses and vehicles belonging to local municipalities and corporations.

Rules on fitness certificates for private vehicles older than 15 years have been tightened. Re-registration fees for cars have also been raised to discourage the continued use of ageing vehicles.

Why the Scrappage Policy Is Falling Short

Several factors are cited as reasons the policy is not delivering the expected results.

• Lack of infrastructure: Many parts of Gujarat, and of the country, still do not have enough authorised scrapping centres. Surrendering a vehicle and obtaining the certificate is a complex and time-consuming process for ordinary citizens.
• Competition from the unauthorised scrap market: Local scrap dealers often offer owners more cash than government centres, frequently by selling off spare parts. There is also little paperwork, which makes them the preferred option for many.
• Rising vehicle prices: New vehicles keep getting costlier. Replacing a working vehicle also means taking on a loan with high instalments, which many middle-class families cannot afford.
• Old vehicles that still work: Many owners see no reason to replace a vehicle that remains in good working order. In rural areas, vehicles and tractors that are 15 years old often serve farming and local transport well, which makes owners reluctant to scrap them. Many Indian families also share an emotional bond with their vehicles.
• Inadequate compensation: The money owners receive for scrapping an old vehicle is low. Road tax on private non-transport vehicles in Gujarat is a one-time 6% of the ex-showroom price, so even a concession of up to 50% amounts to no more than about 3% of the cost of a new car or two-wheeler. That is not enough to persuade the average owner to buy an expensive new vehicle.