Madhya Pradesh New Scrap Policy polishes shine off old vehicles

Sale of old vehicles drops by 80% in MP as the New Scrap Policy is set to be implemented from April 1

ANKITA ANAND | Updated on: Thursday, March 31, 2022, 11:37 PM IST

Registration and renewal of old vehicles in state will now attract manifold fees under the new scrap policy
Registration and renewal of old vehicles in state will now attract manifold fees under the new scrap policy |

Bhopal(Madhya Pradesh): The sale of old vehicle models witnessed a major drop in Madhya Pradesh past month, said the industry players Free Press talked to, as the government imposes the new scrap policy from Friday.

The sale of vehicles older than the 2007 model have dropped at least by 80%, said Rajaram Krishnamurthy, the vice president of marketing, sales and customer service of a leading vehicle chain based in Jabalpur and a member of the vehicle sellers’ association.

The registration renewal of old vehicles in Madhya Pradesh will now attract manifold fees under the new scrap policy, he said.

This would make the cost of buying and maintaining old cars and bikes increase up to eight times.

The Regional Transport Offices (RTOs) have now stopped re-registering these vehicles and checking their fitness.

“Until now, there has not been any uniform policy for old vehicles. The impact of the National Green Tribunal order may be detrimental to car owners, as they may not be aware of the formalities of dealing with an aged vehicle,” says a four-wheeler showroom owner from Bhopal, Advitiya Sanyal.

“For a two-wheeler, it will now cost Rs 700 more than before making it Rs 1,000. Similarly, the car will cost Rs 4,400 more making it Rs 5,000 to renew the registration of vehicles with a 15 years old registration certificate. This has dropped the sale of older models, which people used to prefer due to their lesser prices,” he added.

The penalty has also been increased if there is a delay in renewing the registration. Now a penalty of Rs 300 per month will be levied on two-wheelers and Rs 500 per month on four-wheelers.

The highest fee will be charged for the fitness of the vehicle. Till now, Rs 800 had to be paid for the fitness of heavy vehicles. But now the owners will have to pay Rs 13,500.


  • Owners, who will decide to scrap their vehicles under this policy, will be given incentives in order to buy new vehicles.

  • The value of the earlier showroom price will be given to the owner from 4 to 6 percent at the time of vehicle scrapping.

  • If one scraps their old vehicle and buys a new one, they will get a refund of 25% on the road tax which is quite amazing. For commercial vehicles, the percentage is 15%.

  • A discount of 5% on the purchase of new vehicle but this only given to those who are having the scrapping certificate


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Published on: Thursday, March 31, 2022, 11:37 PM IST