India Readies Old-Car Scrappage Plan

India expects within a few months to finalize a scheme that encourages consumers to scrap old cars and buy new ones.

The objective is to improve air quality and capture more scrap metal as vehicles reach their end of service life. The government presented a policy statement on the idea two years ago and has been responding to public comment since then.

About 28 million vehicles in India are at least 10 years old, according to the New Delhi-based Economic Times. The newspaper says that as vehicles grow older, most today are either sold as used or abandoned rather than scrapped.

The Society of Indian Automobile Manufacturers suggests the program define eligibility based entirely by age. The group notes that the country lacks the infrastructure to examine the health of all cars and decide which should be candidates for retirement.

The government insists the initiative won’t force anyone to scrap an older car, including well-maintained antiques. It says the policy will offer rebates and/or tax breaks to owners of eligible vehicles but leave the choice of participating to them.