
Uttar Pradesh has scrapped over 1.95 lakh vehicles since August 2022, the highest among states. Nationwide, only 4.2 lakh vehicles processed, with NITI Aayog flagging less than 3% of end-of-life vehicles handled through authorised channels.
Uttar Pradesh has scrapped more than 1.95 lakh vehicles under the Centre's vehicle scrappage policy since August 2022, the highest among Indian states. The figure includes 1,85,000 private vehicles and about 10,000 government vehicles processed through authorised Registered Vehicle Scrapping Facilities (RVSFs) as of June 30, 2026, according to Vahan portal data.
Nationwide, around 4.20 lakh vehicles have been scrapped through RVSFs since the policy kicked off. Between January and July 27 this year, centres processed 1,82,035 applications from across India, the portal showed.
UP has 101 RVSFs registered, with 50 centres fully operational. A senior UP government official said the entire process is technology-driven, transparent, and simple. The system runs online through the Centre's Vehicle-Scrap Portal and Vahan system under the Ministry of Road Transport and Highways.
Vehicle owners who deposit their old vehicles at an authorised centre receive a Certificate of Deposit. That certificate provides up to a 10% rebate in road tax for commercial vehicles and up to 15% for private vehicles when buying a new one. Owners also get the scrap value of the vehicle. If they do not purchase a new vehicle immediately, the certificate can be sold to another person under the prescribed system, the official added.
After UP, Haryana has the most RVSFs with about 25 centres, followed by Gujarat and Maharashtra with 10 each, the Vahan portal showed.
Delhi-NCR is also driving vehicle scrappage. It recently approved the Delhi EV Policy 2026, which places scrappage at the centre of the clean mobility transition. The policy offers incentives of up to ₹1 lakh for owners replacing older vehicles with electric vehicles.
Despite the policy's reach, a NITI Aayog report said less than 3% of the country's targeted end-of-life vehicles were processed through authorised channels between August 2022 and July 2025.
Pratik Shah, Partner at EY Parthenon, told businessline that India's vehicle scrappage ecosystem is moving from a policy-led initiative toward a circular-economy opportunity. Organised scrappage can unlock value through material recovery and component reuse. Greater consumer awareness, RVSF reach, recycling economics, and integration across the automotive value chain will be critical to scaling adoption, Shah said.
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