Few Scrap Old Vehicles in Hyderabad

 Hyderabad: Despite government incentives, non-commercial vehicle owners, especially those with bikes and cars older than 15 years, are showing little interest in scrapping their vehicles. Officials said only 20 to 25 vehicles are being scrapped each month at the Hyderabad Regional Transport Authority (RTA) offices.

The scrappage policy appears to have made little impact in the state. Many vehicle owners claim that their cars, although over 15 years old, are well maintained and have clocked low mileage. “Several owners prefer to renew registration by clearing fitness tests and paying the green tax, which allows continued use of the vehicle for another five years,” transport officials explained.

Altaf Baig of Marvel Motors, Masab Tank, said, “Many Hyderabadis still use two-wheelers or public transport even if they own a car, to avoid traffic congestion. Since the cars are not used much and are regularly maintained, they remain in good condition even after 15 years. People often retain them as a second car for family members, even if they buy a new one.”

Joint transport commissioner C. Ramesh said the policy aims to reduce carbon emissions. “India adopted Bharat Stage (BS) 6 norms in April 2020, equivalent to Euro 6 standards. These regulate tailpipe emissions across vehicle categories. India made a direct leap from BS 4 to BS 6.”

To extend a vehicle's registration after 15 years, owners must apply for a fitness test, pay a green tax of Rs 5,000 and an additional processing fee of around Rs 2,000. A penalty of Rs 500 per month is levied for lapses beyond the expiry of registration.

Infographic: Tax Concessions for New Vehicles (on submission of Certificate of Deposit)

Price Range of New Vehicle

Up to Rs 5 lakh

Rs 5–10 lakh

Rs 10–15 lakh

Rs 15–20 lakh

Tax Concession

 Rs 10,000

Rs 20,000

Rs 30,000

Rs 40,000