India’s auto industry missed FY26 vehicle scrappage targets by 70 per cent under the Environment Protection Rules, 2025. Industry executives blamed unrealistic policy measures and limited ELV availability, while SIAM urged the government to allow other steel scrap materials for compliance
India’s booming automobile sector, contributing over 7 per cent to GDP, is key to its $5 trillion economy goal. With strong policy support, EV adoption, and local manufacturing growth, it reflects India’s rise in global auto production and clean-tech innovation
Two-wheeler segment is expected to be the most impacted, with the target consumer group's affordability and demand sentiment sharply hit by the second wave.
