Scrapyards overburdened as Delhi residents rush to dispose of old vehicles

The Delhi government’s decision to revoke its order restricting the plying of End of Life (EOL) vehicles brought relief to vehicle owners across the city. Many heaved a sigh of relief as the controversial ruling was withdrawn. However, anxiety persists, with a prevailing fear that the government might reintroduce the order and resume seizing vehicles.

According to the Commission for Air Quality Management, Delhi currently has 6.2 million EOL vehicles, including 4.1 million two-wheelers. In 2024, authorities impounded 39,273 EOL vehicles. An official disclosed that fuel stations in the capital are equipped with automatic number plate recognition technology linked to the centralised Vahan database, allowing them to identify EOL vehicles and deny refuelling.

Many vehicles were seized and sent to authorised scrapping agents during the period when the order was in force.

Scrapping facilities overwhelmed

The Delhi Transport Department states that five registered vehicle scrapping facilities serve the city, operating in an environmentally responsible manner. Though their administrative offices are based in Delhi, the actual scrapping yards are located in neighbouring states such as Haryana and Uttar Pradesh due to space and regulatory constraints.

The largest of these, operated by Mahindra MSTC Recycling Pvt Ltd, spans 19,397.75 square metres in Greater Noida Extension, Uttar Pradesh, and is equipped with advanced recycling technology to handle high volumes of vehicles. Other facilities are located in Sonepat (Haryana) and Sikandrabad and Noida (Uttar Pradesh).

Even after the order’s withdrawal, scrapping centres remain overburdened. An employee at Mahindra MSTC Recycling, speaking on the condition of anonymity, said, “On usual days, before the order was introduced, most of our work started in the winter due to pollution. This time, vehicles are still flooding in even though the order has been revoked. Most owners admit they are doing it out of fear that the order might be reintroduced.”

Also Read: Delhi: CAQM’s deferred crackdown on end-of-life vehicles from Nov 1 sparks debate over equity

The facility now processes around 300 vehicles daily. Although police seizures have stopped, owners are voluntarily taking their vehicles to scrapping centres. A similar pattern has been reported at Pineview Technology, Bharat Motors, Bharat Vehicle Scrap, and Maruti Suzuki Toyotsu India (MSTI).

At Pineview, over 100 vehicles are arriving daily. “We pay Rs 15 per kg for the scrap,” said Arvind, an employee. He added that while many still opt for second-hand car dealers, some are disillusioned with the resale market due to the risk of vehicle registration not being updated. “Most vehicles we get are lower-range models. Luxury vehicles still find their way to the second-hand market,” he noted.

Vehicle owners lament heavy losses

For many owners, the scrapping policy has meant significant financial losses. With only a few months left before his car hit the 10-year mark, Arjun Mehra was forced to sell his Rs 88 lakh Mercedes for just Rs 7 lakh. “It hadn’t even racked up many kilometres,” he sighed. He pointed out the inconsistency of seeing “older buses and other vehicles still on the road well past their so-called ‘end of life’, while the average person fears penalties.”

Rohan Sharma faced a similar dilemma, selling his car hastily. “At least I got something for it,” he said. “If I’d waited, I might have got nothing at all.” Vikram Malhotra, who sold his 14-year-old car with barely 14,000 kilometres on the odometer, was equally frustrated. “I don’t drive much. The pollution certificate showed everything was fine, so I don’t understand why this strictness is needed,” he said.

Owners are also unhappy with the compensation offered. “It feels poorly planned,” said Neeraj Gupta. “They promise 5% of the ex-showroom value, but most scrap dealers offer even less. It’s gutting to see your car, still in decent shape, reduced to such a low price.”

Surge in business at Mayapuri scrap market

The scrapping frenzy is also evident at Bharat Vehicle Scrap, whose Rohini office is struggling to keep up with requests. “We are only four people in the office, and scrap requests haven’t stopped. Most are for lower-end models. We handle around 60 requests daily, far beyond our sanctioned capacity,” said Mohammed Imran. The facility operates on a 1,000-square-yard space in Sonepat.

Mayapuri, Asia’s largest scrap market, has recorded an 80% surge in business within a week of the order’s implementation. Residents are selling luxury cars, including BMWs, Mercedes-Benz vehicles, Range Rovers, and Mahindra Thars, alongside sports bikes, often at steeply discounted prices. Scrap dealers say everyone—from ministers to police officers—is selling well-maintained vehicles out of fear of penalties. A Mercedes-Benz worth Rs 84 lakh was reportedly sold for just Rs 2.5 lakh.

Scrap dealers offer better prices than police-seized valuations because they can resell parts or entire vehicles in other states, benefiting both themselves and sellers.

Delhi police data highlights the scale of enforcement before the order was revoked. Until December 11, 2024, police seized 9,258 end-of-life vehicles, compared to 528 in 2023 and 1,147 in 2022.