A new automobile scrappage policy is needed. Link it with emissions

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Anti-smog guns being used to spray water droplets to curb air pollution, in New Delhi on Monday | ThePrint photo by Suraj Singh Bisht

The smog’s toxic chokehold this week was no picnic. Delhi’s air quality index breached the ‘severe plus’ zone – the highest level of air emergency according to the country’s preferred institutional measure for calibration.

Automobile emission is the highest contributor to Delhi’s pollution numbers, constituting over 50 percent of local pollution sources. In contrast, stubble burning – more sinned against than sinning – only contributes 8.19 percent to its pollution.

India first introduced a scrappage policy only in 2021: the Voluntary Vehicle Modernisation Programme (VVMP) where all commercial vehicles more than 15 years old, and passenger vehicles over 20, underwent the regional transport office’s mandatory fitness tests. Those that failed were scrapped.

A revised scrappage policy — one that prioritises emissions over vehicle age — is reportedly in the works, though no formal announcement has so far been made.

Yet, it is time to make electric vehicles (EVs) match the pace of other anti-pollution initiatives to ensure Delhi’s air is clearer. And an important part of the challenge will be to decide what we do with the old vehicles (EV or not).

Also read: Haryana managed to divert farmers from stubble burning. Punjab must stop the freebies

We must look to experiences from Norway and China to see how well-designed incentives  work toward accelerating EV adoption. Global EV sales are growing exponentially, accounting for 10 percent of passenger vehicle sales in 2022, a tenfold increase over five years – with countries like Norway leading adoption at 80 percent. Achieving climate goals will require adoption to reach 75 to 95 percent of sales by 2030. Norwegian authorities offer free parking, road tolls discounts, and access to priority bus lanes. China’s tax credits and free licence plates in cities like Shanghai, in addition to incentives for manufacturers, have worked for that country.

EVs eliminate tailpipe emissions altogether and have this natural advantage in an emissions-based scrappage regime. An anti-pollution policy prioritises emissions over age and recognises that responsible maintenance can extend a vehicle’s life.

Even if Delhi pivots to EVs to fight air pollution, consumer scepticism may still be a hurdle: high upfront costs and insufficient charging infrastructure (range anxiety) remain concerns, discouraging potential buyers from going smoke-free. They require testing for battery safety and the condition of their electrical systems as they age, making their scrappage imperative, too.

To lay the groundwork for longer-term implications, state authorities have already shown some intent toward an EV-ready policy. But  linking scrappage and emissions is the holistic way to ensure EVs go mainstream. Any policymaking exercise must define these clearly and widely, and specify a timeline for mandatory testing, separate from the current internal combustion engine (ICE) vehicle schedule.

Here are a few policy to-dos:

Emphasise the lower longterm costs of EV ownership

It stands to reason that automobiles with zero tailpipe emissions need not be charged for fitness certificates priced at ₹1,000 initially and up to ₹7,500 for renewals — with no price differentiation for EVs, which is an unmet opportunity to reduce the maintenance burden on owners and encourage EV adoption.

Upgrade and expand the network of automated testing stations

Only 81 automated testing stations are operational in the country, despite the VVMP’s lofty goal of establishing 450 to 500, with only one in Delhi. Gujarat alone has 24, reflecting the disparity in their distribution.

Policymakers should prioritise the expansion and upgradation of automated testing stations to support EV owners’ convenience. Indeed, EV sales exceeded a million in under nine months last year, a milestone that took the entire year to achieve in 2022.

The government recently allocated ₹780 crore toward the upgradation of testing agencies under the PM E-DRIVE Scheme. However, the four chosen authorities named under this scheme play no major role in vehicle scrapping.

In addition to pollution control, EVs are also exempted from Delhi’s odd-even rule based on licence plate numbers, which limits the city’s traffic.

A policy tailored for EV traction should be much more than merely a pollution control tool. This is an essential step for policymakers to nudge consumer behaviour toward EV adoption, getting rid of clunkers, and replacing them with a cleaner alternative. It should be a strategic opportunity to prepare the emerging industry’s needs for disposal and battery management, too, to kickstart what may be a very good thing for all of us.

The authors work at Koan Advisory Group, a technology policy consulting firm. Views are personal.

This article is part of ThePrint-Koan Advisory series that analyses emerging policies, laws and regulations in India’s technology sector. Read all the articles here.

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