THE NEW DELHI REGIONAL TRANSPORT OFFICE DECLARED THE WAR TO THE OLD CARS


The New Delhi Government and its Regional Transport Office (RTO) declared the war to the old cars in the capital of India. This is actually the first norm to regulate the use of old vehicles. To sum up, the new norm says that cars older than 15 years cannot be used anymore. In this way, cars should be automatically scrapped. Let us go deeper into the car scrapping in India!


car scrapping india new delhi


The National Green Tribunal´s order is behind this norm. In India, this Tribunal oversees the effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement or any legal right relating to the environment. The main objective is giving relief and compensation for damages to persons and property.


India and China are on the list of the most polluting countries in the world. In terms of cities, New Delhi features the world´s most toxic air. The traffic situation in New Delhi is inefficient, noisy, polluting and sometimes smelly. Tuk Tuks are really convenient and probably the best and cheapest solution to reach the first place wherever you want to go!


The new norm seems to be one of the countermeasures to hopefully reduce the pollution in its capital. For that end, the National Green Tribunal and the RTO join resources and forces to put old vehicles out of the streets in New Delhi.


TRANSFER POLLUTING VEHICLES INTO OTHER STATES


Unfortunately, the National Tribunal is not giving any relief and compensation for damages and property. Car scrapping is expensive for the car owners who are selling the vehicle to the authorized scrapping dealers, receiving just a price per kilogram.


Before the car reaches a maximum of 15 years, the RTO gives one more option to the car owners: transfer those polluting vehicles into other states.


india new delhi pollution


Transferring the old vehicles into other states might bring complexity for the car owners due to all the time and heavy paperwork. However, that would, of course, be more profitable than just scrapping the car. From my point of view, I believe this might not be the best solution to eradicate the pollution issues, but just transferring “the problem” into other states within India. This is like sweeping the house and putting the dust into a different room.


THE NEW DELHI REGIONAL TRANSPORT OFFICE´S PLAN ON CAR SCRAPPING IN INDIA


The RTO has released an official plan for the scrapping process, let us have a look into the main points:


  • It is the responsibility of the car owner to approach an authorized scrap dealer for car scrapping. Only then, the dealer will ensure the vehicle is disposed off safely, avoiding any further impact on the environment.
  • Based on the weight of the vehicle, the scrap dealer will quote a price for scrapping through a physical inspection.
  • Before scrapping the car and the recycling process starts, the chassis number is taken out to avoid its usage again. This will avoid responsibilities to the car owner.
  • If the car is not in working conditions, the scrap dealer will pay the car owner an average of INR 15 per kg. This is something around 0.19.-€/kg for the metal parts.
  • If the car is in working conditions, the scrap dealer will make business selling the spare parts of the vehicle, being just the metallic body of the car.


THE BUSINESS BEHIND THE CAR SCRAPPING IN INDIA

How did I decide to write about this topic? When heading to the iconic Jama Masjid in New Delhi, I passed by some of these local vendors of scrapped spare parts for all vehicles. We are talking about a supermarket with a big offer of spare parts. Engine blocks and peripheries as alternators, turbochargers, radiators and A/C compressors, etc. Further, chassis parts like outside/inside mirrors, doors, front and rear bumpers, headlights, flywheels, tires, and wheels, etc.


car scrapping India


scrapping New Delhi India


spare parts New Delhi India


It was the first time for me to see something like this in the middle of the street. There were more than 30-40 small shops (better to see below pictures about it) and then I decided to ask local Indians. Given the new car scrapping rule, spare parts became a good business in the Indian streets. Basically, car owners and scrap dealers the main suppliers to these local Indian businessmen.


India declares war on old cars


In a country like India, economic conditions for most of the population are rather difficult. Therefore, the second-hand market for old vehicles is the norm for those who cannot afford to buy a new one. From now on, Indian people will find more difficulties in buying old but cheap cars. The second option consists of buying newer cars, something that might still be very inaccessible for many Indian people.


India spare parts car scrapping


Similarly, given the rule of scrapping old vehicles, there are some other Indian people who have found in this a great business. Spare-parts sellers have proliferated in a greater extent due to the sudden big amount of supply. Since the life-cycle of a vehicle is normally around 7 years, there are great chances to sell these parts to other car owners with the same model.


QUESTIONS FOR TODAY´S READERS


This is all for today, I hope you have enjoyed today´s article. Please, as always, it would be a great pleasure to hear from your comments, opinions, questions and/or any other suggestion.


What do you think about this new norm coming from the Indian Government?


What do you think about these small spare parts dealers?


And what about the CEO of these business – the goat?  Looking forward to hearing from your answers soon! 😊

Juan Carlos Hoyos Saez Administrator
Passionate about Cars, Driving and Business. My objective is to inspire more and more car lovers. Racing, Kickboxing, traveling, and healthy life. Sub-project leader as a Material Cost/Project Controller, Daimler Trucks Asia (Tokyo, Japan).
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