India is currently facing a significant hurdle in its efforts to manage end-of-life vehicles (ELVs), with only 350,000 out of 12 million vehicles being processed through registered facilities between 2022 and 2025. NITI Aayog has raised alarms over the country's weak monitoring infrastructure and the looming surge of ELVs, which is projected to reach 50 million by 2030. These aging vehicles represent a major environmental and safety threat, as they contribute significantly higher emissions—up to eight times more than modern BS-VI standards—while becoming increasingly difficult to operate on the road.

The transition toward a cleaner, safer fleet is hampered by fragmented digital systems and the dominance of the unorganized scrap sector, which often offers higher payouts than formal recycling centers. Furthermore, a lack of clear eco-design guidelines for manufacturers and high taxation on recycled parts have stifled the development of a sustainable circular economy. While the government introduced a vehicle scrappage policy in 2021 to address these issues, NITI Aayog suggests that stronger legal mandates for deregistration and better inter-ministerial coordination are essential to moving away from informal dismantling and ensuring that older, polluting vehicles are removed from Indian roads permanently.