India's Vehicle Scrappage Programme Gains Momentum Amid Regional Disparities
India's voluntary vehicle scrappage programme is accelerating, yet its implementation reveals a significant regional imbalance. While the initiative has scrapped approximately 4.4 lakh vehicles at registered facilities nationwide, southern states, including Tamil Nadu, are falling behind their northern counterparts despite contributing substantially to new vehicle sales.
Scrappage Statistics Highlight Passenger Vehicle Dominance
Under the central government's policy, the scrapped vehicles comprise nearly 70% passenger cars, with buses and trucks accounting for about 5% and 6%, respectively. This distribution underscores limited penetration in the commercial vehicle segment, which represents one of the largest pools of ageing and polluting vehicles on Indian roads.
North India Leads with 70% of Total Scrappage Volumes
The regional divide is stark, with North India responsible for nearly 70% of all scrappage activities. Early infrastructure development, robust investor participation, and enforcement-driven measures, particularly in the National Capital Region, have fueled this momentum. A key catalyst was the mandatory scrapping of government vehicles older than 15 years, which validated processes and signaled strong policy intent to the broader market.
South India Lags Despite High Vehicle Sales Contribution
In contrast, South India accounted for only about 7% of vehicles scrapped nationally in 2026, even though the region contributes close to 30% of vehicle sales. This shortfall spans all vehicle segments. A study by the Confederation of Indian Industry and global consultancy Kearney identifies structural gaps in the region, with southern states trailing the national average in both testing and scrappage outcomes.
Key findings from the study include:
- Only about 17%–18% of planned Automated Testing Station capacity is operational in the South.
- ATS facilities handle less than a quarter of fitness tests, with the majority still processed through legacy channels.
Federal Governance and Administrative Challenges Explain Disparities
Nithin Chandra, senior partner at Kearney, commented, "The scrappage policy is centrally framed but state-executed, reflecting India's federal transport governance structure and resulting in uneven adoption. While there has been strong uptake in the North, differences in administrative capacity, institutional readiness, fiscal space, and enforcement linked to air quality or congestion pressures explain the slower progress in the South."
Infrastructure and Enforcement Gaps Constrain Southern Progress
Northern states, especially those around Delhi-NCR, moved early to establish Automated Testing Stations and Registered Vehicle Scrapping Facilities alongside tighter enforcement. In comparison, several southern states operationalised scrapping facilities only in 2025–26. Although enforcement has since begun to strengthen, the region remains underpenetrated in terms of operational RVSFs relative to its vehicle base, which constrains scrappage volumes.
Future Outlook and Ongoing Challenges
Chandra noted that scrappage rates are expected to improve as infrastructure stabilises and capacity utilisation rises. However, even in the North, annual scrappage volumes remain a fraction of the total ageing vehicle population. Weak enforcement of usage restrictions continues to allow many older, polluting vehicles to stay on the road, despite the availability of scrappage infrastructure, highlighting ongoing challenges in achieving broader environmental and policy goals.
