India to let market set vehicle scrapping prices, says minister

The Indian government will not intervene in setting the scrap prices for vehicles, according to Union Minister Nitin Gadkari. Prices will be determined by market forces based on the vehicle's condition, with private Reserve Vehicle Scrapping Facility units responsible for assessments. Incentives are available for vehicle owners, including waiving registration fees for new vehicles purchased with a scrapping certificate. Motor vehicle tax concessions of up to 25% for private vehicles and 15% for commercial vehicles will also be offered. The crackdown on end-of-life vehicles resumed in October 2024, targeting those exceeding age limits. The government is promoting electric vehicles through the PM E-DRIVE scheme, which includes incentives and infrastructure development to reduce pollution.