Scrappage certificate and exchange bonuses on a new car: what you actually save
By Arjun Ramanarayanan, IndiCar · Published 26 October 2026 · Tips
A scrappage certificate can waive your registration fee, cut road tax and bring a maker discount of 1.5% of ex-showroom or Rs 20,000, whichever is less. It replaces the exchange bonus.
A Certificate of Deposit from a registered scrapping facility can lower what you pay for a new car in three ways. It waives the registration fee, it brings a road tax concession set by your state, and it can bring a maker discount that, for the makers named by the Ministry, is 1.5% of the ex-showroom price or Rs 20,000, whichever is less. That maker discount replaces the exchange bonus. It does not add to it. How much you save depends on your state's rules, the vehicle category and what the maker offers.
What a Certificate of Deposit is
When you hand an old vehicle to a registered vehicle scrapping facility (RVSF), you receive a Certificate of Deposit. It is the document that unlocks the benefits on your next vehicle: a registration fee waiver, a road tax concession and maker discounts.
The certificate is tradable. You can use it yourself or transfer it to someone else, which matters if you are not buying straight away.
Only a registered scrapping facility counts
Only a notified RVSF can issue a valid Certificate of Deposit. A roadside scrap dealer cannot. If you sell your old car to a regular scrap dealer, you get no certificate, and so no road tax rebate on the new car.
Before you hand over the old car, check that the facility is a notified RVSF.
Maker discounts: 1.5% or Rs 20,000
The maker discount for the named brands is 1.5% of the ex-showroom price or Rs 20,000, whichever is less. When the policy launched, the government advised manufacturers to give 5% off a new vehicle against the scrapping certificate. What makers then agreed to, according to a Road Transport Ministry statement, was smaller and time-limited.
| Maker | Discount against a Certificate of Deposit |
|---|---|
| Maruti Suzuki, Tata, Mahindra, Hyundai, Kia, Toyota Kirloskar, Honda and others | 1.5% of the ex-showroom price or Rs 20,000, whichever is less |
| Mercedes-Benz India | Flat Rs 25,000, over and above all existing discounts |
Passenger vehicle makers committed to these discounts for one year. Commercial vehicle makers committed for two years. Because the offers were time-limited, whether a given maker is still honouring one is something to confirm, not assume.
Scrappage discount versus exchange bonus
You get one or the other, not both. The scrappage discount replaces the discount buyers used to get for exchanging an old vehicle.
So the choice is about the old car. Exchange it, and you take the exchange discount. Scrap it at an RVSF, and you take the maker's scrappage discount plus the tax and registration benefits that come with the certificate. The certificate's value is not limited to the maker discount, so judge the scrappage route on its full value.
Road tax and registration fee: the national rules
The Ministry of Road Transport and Highways (MoRTH) caps the motor vehicle tax concession at 25% for non-transport vehicles and 15% for transport vehicles. Within those ceilings, each state fixes its own rate.
The registration fee on the new vehicle is waived under Rule 81 of the Central Motor Vehicles Rules, 1989. GSR 714(E), dated 4 October 2021, waives the fee for issuing the registration certificate when you register against a Certificate of Deposit.
Road tax concession in Maharashtra
Maharashtra's rate depends on the vehicle and when it is scrapped. A Chief Minister's Office statement sets out these conditions:
- 10% tax concession for non-transport vehicles voluntarily scrapped at an RVSF within 15 years of registration.
- 15% concession for vehicles subject to lump-sum tax.
- The new vehicle must be in the same category as the scrapped one: 2-wheeler for 2-wheeler, 3-wheeler for 3-wheeler, light motor vehicle for light motor vehicle.
- The old vehicle must be scrapped voluntarily within three years of the notification's publication date.
Not every published summary agrees. Another listing puts Maharashtra at 25% for private vehicles, notified in 2022. With the reported figures this far apart, do not build your budget on the higher number until it is confirmed for your vehicle.
How long the certificate lasts
The reported validity is two or three years, and the safer plan is two. For the Maharashtra tax concession, the certificate is reported as valid for two years. A separate report from September 2026 says validity is three years from issue and that the clock does not restart when the certificate is transferred.
The second point matters if you buy a certificate rather than create one. A certificate bought late in its life gives you less time to use it.
Buying a certificate without an old car
You do not need an old car of your own to claim these benefits. Because the certificate is tradable, you can buy one. DigiELV is the only MoRTH-authorised platform for lawful digital trading of Certificates of Deposit.
Whether buying one pays off depends on the same three things: your state's rules, the vehicle category and the maker's offer.
Worked example: Skoda Slavia
The Skoda Slavia shows where a certificate's benefits land on a real price. These are individual-registration figures for Mumbai from IndiCar's price list dated 1 October 2026, for the cheapest of the 12 priced variant and powertrain combinations, the 1.0 Classic Petrol Manual.
| Line item | Amount |
|---|---|
| Ex-showroom price | Rs 9,99,900 |
| RTO registration and road tax (individual) | Rs 1,21,659 |
| Insurance (first-year comprehensive) | Rs 62,089 |
| FASTag | Rs 850 |
| On-road price | Rs 11,84,498 |
Everything above the ex-showroom price adds Rs 1,84,598. The certificate's tax concession and registration fee waiver act on the RTO line of Rs 1,21,659. Any maker discount acts on the ex-showroom price. Skoda is not among the makers named in the Ministry statement, so do not assume a Skoda discount applies.
The Slavia range runs from Rs 11,84,498 on-road to Rs 22,52,842 for the 1.5 Monte Carlo Petrol Automatic (ex-showroom Rs 18,84,000). All versions are petrol, with manual and automatic gearboxes. You can see every version on the Skoda Slavia prices and configurator page, or open the 1.0 Classic Petrol Manual price breakup.
IndiCar confirms stock, delivery date and the itemised price before you book. To see how registration and road tax add up on another car, use the on-road price calculator or browse all new cars with on-road prices.
Sources: business%2Foems to offer 15 3 discount against scrapped vehicles gadkari 3166517, 15% tax rebate on new vehicle in Maharashtra if old voluntarily scrapped, Auto makers to offer discounts for scrapping old models, says Nitin Gadkari
Buying a new car through IndiCar
IndiCar arranges new-car purchases in Mumbai, Navi Mumbai and Thane. You book a new car on IndiCar at the on-road price shown on its car page, with the full price breakup: ex-showroom, RTO registration, insurance, TCS and FASTag. You book online with a refundable reservation, and IndiCar sources the car from partner dealer stock and handles the registration, insurance, paperwork and delivery.
You deal only with IndiCar from quote to delivery. Your phone number is never passed to a dealer, and you do not need to take the quote to a showroom to negotiate. See on-road prices and book or get a WhatsApp quote on +91 85916 41004.
Frequently asked questions
Who can issue a valid Certificate of Deposit?
Only a notified registered vehicle scrapping facility (RVSF). A roadside scrap dealer cannot issue one, so selling your car to a regular scrap dealer means you lose the road tax rebate.
How much discount do carmakers give against a scrappage certificate?
According to a Road Transport Ministry statement, Maruti Suzuki, Tata, Mahindra, Hyundai, Kia, Toyota Kirloskar, Honda and others agreed to 1.5% of the ex-showroom price or Rs 20,000, whichever is less. Mercedes-Benz India agreed to a flat Rs 25,000 over and above existing discounts. Passenger vehicle makers committed for one year.
Can I get the scrappage discount and an exchange bonus together?
No. The scrappage discount replaces the discount buyers were getting for exchanging their vehicles.
What road tax concession does Maharashtra give?
A Chief Minister's Office statement gives 10% for non-transport vehicles voluntarily scrapped at an RVSF within 15 years of registration, and 15% for vehicles under lump-sum tax. The new vehicle must be in the same category as the scrapped one. Another listing reports 25% for private vehicles, notified in 2022, so confirm the rate for your vehicle.
How long is a Certificate of Deposit valid?
It is reported as valid for two years for the Maharashtra tax concession. A September 2026 report says three years from issue, with no restart when it is transferred.
Can I buy a Certificate of Deposit if I have no old car?
Yes, the certificate is tradable. DigiELV is the only MoRTH-authorised platform for trading Certificates of Deposit digitally. Your savings depend on state rules, vehicle category and the maker's offer.
Tags: scrappage policy, certificate of deposit, road tax, exchange bonus, maharashtra