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<p>India’s Vehicle Scrappage Policy has become a vital element of the nation’s circular economy plan for the transportation sector, prioritizing formal recycling, fleet modernization, and emissions mitigation. Nevertheless, insufficient attention has been paid to aligning the policy’s design with overarching circular-economy objectives, including resource conservation and lifecycle sustainability. This study examines whether India’s automotive scrappage policy fosters genuine circularity or creates unforeseen resource and environmental trade-offs. The research employs a qualitative, doctrinal, and lifecycle-informed systems analysis of India’s vehicle scrappage framework, encompassing the Vehicle Scrappage Policy, the Registered Vehicle Scrapping Facility (RVSF) Rules, the Automated Testing Station (ATS) structure, and End-of-Life Vehicle (ELV) laws. A five-dimensional analytical framework encompassing durability, material flow dynamics, embedded carbon, traceability, and incentive structures is employed to assess the policy’s alignment with circular economy principles. The analysis delineates five systemic conflicts inherent in the policy design. Initially, age-based retirement policies and replacement incentives may reduce product durability, leading to early vehicle retirement. Secondly, enhanced recycling capacity does not inherently diminish reliance on raw materials and may occur alongside persistent increases in material demand. Third, policy evaluation predominantly focuses on operational emissions, substantially neglecting the embedded carbon associated with vehicle production and supply chains. The limitations of traceability and the persistent influence of informal dismantling sectors hinder the efficacy of circular material management. The current incentive frameworks predominantly promote fleet renewal instead of resource conservation. The results indicate that policies focused solely on recycling may be inadequate to achieve broader circular-economy goals. The report asserts that increased focus is necessary on durability-focused regulation, condition-based retirement strategies, lifecycle-informed incentive frameworks, and supply chain decarbonization. The paper provides a methodology for assessing circular economy strategies from a lifecycle governance perspective in emerging economies.</p>

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The circular economy mirage: a lifecycle systems analysis of India’s vehicle scrappage policy

  • 期刊论文

  • 发表日期：

    2026年7月6日

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  • Aladdin H. M. Shaker,
  • Puneet Pathak

摘要

India’s Vehicle Scrappage Policy has become a vital element of the nation’s circular economy plan for the transportation sector, prioritizing formal recycling, fleet modernization, and emissions mitigation. Nevertheless, insufficient attention has been paid to aligning the policy’s design with overarching circular-economy objectives, including resource conservation and lifecycle sustainability. This study examines whether India’s automotive scrappage policy fosters genuine circularity or creates unforeseen resource and environmental trade-offs. The research employs a qualitative, doctrinal, and lifecycle-informed systems analysis of India’s vehicle scrappage framework, encompassing the Vehicle Scrappage Policy, the Registered Vehicle Scrapping Facility (RVSF) Rules, the Automated Testing Station (ATS) structure, and End-of-Life Vehicle (ELV) laws. A five-dimensional analytical framework encompassing durability, material flow dynamics, embedded carbon, traceability, and incentive structures is employed to assess the policy’s alignment with circular economy principles. The analysis delineates five systemic conflicts inherent in the policy design. Initially, age-based retirement policies and replacement incentives may reduce product durability, leading to early vehicle retirement. Secondly, enhanced recycling capacity does not inherently diminish reliance on raw materials and may occur alongside persistent increases in material demand. Third, policy evaluation predominantly focuses on operational emissions, substantially neglecting the embedded carbon associated with vehicle production and supply chains. The limitations of traceability and the persistent influence of informal dismantling sectors hinder the efficacy of circular material management. The current incentive frameworks predominantly promote fleet renewal instead of resource conservation. The results indicate that policies focused solely on recycling may be inadequate to achieve broader circular-economy goals. The report asserts that increased focus is necessary on durability-focused regulation, condition-based retirement strategies, lifecycle-informed incentive frameworks, and supply chain decarbonization. The paper provides a methodology for assessing circular economy strategies from a lifecycle governance perspective in emerging economies.