The vehicle scrapping policy is unlikely to make people junk their old vehicles for new ones in a big way, owing to insufficient incentives offered by the government for replacement, a report said The vehicle scrapping policy, proposed in Parliament last week, is unlikely to make people junk their old vehicles for new ones in a big way, owing to insufficient incentives offered by the government for replacement, a report said on Monday. Under the proposed policy, a scrapped vehicle will be offered a monetary value close to 4-6 per cent of the showroom value. There could even be up to 5 per cent discount on the purchase of a new vehicle if a scrap certificate is produced. In addition, it also offers a 25 per cent discount in road tax, among others. It also proposes to de-register vehicles that fail fitness tests or are unable to renew registrations after 15-20 years of use. While the scrapping policy has the right intent, we believe the incentives are insufficient to tr...