How India’s Government Aims To Make Keeping Old Cars Tougher

For many in India, keeping a car for decades is a point of pride. But with air pollution reaching critical levels, the government is taking action to phase out these older, high-emission vehicles. The Delhi government, in collaboration with the central ministries of road transport and finance, is exploring a new strategy: making it more expensive to own aging cars.

The plan focuses on so-called end-of-life vehicles (ELVs), which guzzle fuel and spew harmful pollutants. By hiking insurance premiums and re-registration fees, officials hope to nudge owners toward scrapping their old cars or upgrading to greener options like electric or compressed natural gas (CNG) vehicles.

Why Target Old Vehicles?

Older cars are a major contributor to urban air pollution. In cities like New Delhi, where air quality often dips into the “severe” category, vehicle exhaust accounts for roughly 12% of air pollution, according to the International Energy Agency. This includes harmful substances like carbon monoxide, nitrogen oxides, and particulate matter, which can worsen health issues like asthma and bronchitis.

In the Delhi National Capital Region (NCR), diesel vehicles are considered ELVs after 10 years, while petrol vehicles get 15 years. Outside the NCR, transport vehicles have a 15-year lifespan, and non-transport ones can last up to 20 years. The new proposal could make keeping these vehicles on the road far less affordable.

Higher Costs on the Horizon

The government is working on a model that would allow insurers to charge higher premiums for ELVs based on their age, condition, and emissions. Re-registration fees could also skyrocket, potentially matching or exceeding the cost of registering a new vehicle. These changes might be incorporated into the Central Motor Vehicle Rules, making them a nationwide standard.

Officials have already held talks with industry leaders to discuss the plan. One insider noted that while scrapping old vehicles is the preferred solution, higher costs for insurance and re-registration would discourage owners from keeping unfit, polluting cars on the road.

The Delhi government recently tried to enforce stricter rules by denying fuel to ELVs, but public backlash forced a delay until November. This shows the challenge of balancing environmental goals with public sentiment, especially in a country where cars are often seen as long-term investments.

Industry and Health Perspectives

Private insurers are on board with the plan, citing both environmental and safety concerns. Arti Mulik, chief technical officer at Universal Sompo General Insurance, pointed out that older vehicles pose higher risks of mechanical failures and accidents. She also highlighted the health toll of ELV emissions, which contribute to respiratory illnesses like chronic obstructive pulmonary disease (COPD).

By increasing premiums, insurers aim to reflect these risks while encouraging a shift to cleaner vehicles. The push aligns with broader efforts to promote electric and CNG vehicles, which produce fewer emissions and could help ease the burden on India’s air quality.

What’s Next for Vehicle Owners?

If the proposed changes take effect, owners of older vehicles could face a tough choice: pay significantly more to keep their cars running or invest in newer, eco-friendly models. For many, scrapping their vehicle might become the most practical option. The government hopes this will accelerate the transition to a cleaner, healthier urban environment.

As Delhi grapples with its air quality crisis, these measures could set a precedent for other Indian cities. But with public resistance already evident, the rollout will need careful planning to avoid alienating vehicle owners.