Vehicle Scrappage Standards

Vehicle scrappage standards refer to the statutory criteria set by the authorities regarding the service life, mileage, and technical roadworthiness for the mandatory or advisory deregistration and scrappage of motor vehicles. The vehicle scrappage framework is a vital link in the lifecycle management of motor vehicles, designed to safeguard road safety, promote energy conservation and emissions reduction, and drive automotive fleet modernisation.

Current Scrappage Regulations

Under the revised "Provisions on Mandatory Scrappage Standards for Motor Vehicles" jointly issued in 2025 by four ministries, including the Ministry of Commerce, vehicle scrappage in China is regulated across four key pillars: service life, cumulative mileage, emission levels, and technical roadworthiness.

In terms of service life, statutory limits vary by vehicle segment: small and mini taxis have a lifespan of 8 years, medium taxis 10 years, and large taxis 12 years; rental passenger cars 15 years; small driving school training vehicles 10 years, medium 12 years, and large 15 years; public transit buses 13 years; other small and mini commercial passenger vehicles 10 years, and large/medium commercial passenger vehicles 15 years; dedicated school buses 15 years; large and medium private passenger vehicles (excluding large executive saloons) 20 years; three-wheelers and low-speed trucks powered by single-cylinder engines 9 years, multi-cylinder low-speed trucks and mini goods vehicles 12 years, hazardous material hauliers 10 years, and other commercial goods vehicles (including articulated prime movers and full-trailer combinations) 15 years; special-purpose operational vehicles with cargo-carrying capacity 15 years, and non-cargo special-purpose vehicles 30 years; full trailers and hazardous goods semi-trailers 10 years, container semi-trailers 20 years, and other semi-trailers 15 years; regular three-wheeled motorcycles 12 years, and other motorcycles 13 years.

For small and mini non-commercial passenger cars (private vehicles) and large private saloons, the previous 15-year mandatory scrappage cap has been abolished in favour of a guided scrappage threshold of 600,000 kilometres. For private car owners, hitting the 600,000 km mark triggers an advisory deregistration guideline rather than mandatory condemnation—meaning that as long as the vehicle consistently passes roadworthiness inspections and emission tests, it remains fully road-legal.

Mandatory Scrappage Criteria

Beyond the statutory lifespan and mileage thresholds, a vehicle must undergo mandatory scrappage if it meets any of the following conditions:

• Fails to comply with national vehicle safety and technical standards even after repairs and adjustments, such as irreparable structural damage to the chassis, subframe, or braking system;

• Fails to meet national exhaust emission or noise regulations following repairs, adjustments, or the retrofitting of emission-control systems;

• Fails to obtain a valid vehicle inspection certificate for three consecutive mandatory inspection cycles after the inspection validity window has lapsed.

2026 Vehicle Trade-In & Scrappage Incentive Scheme

The 2026 vehicle trade-in and scrappage incentive programme was jointly rolled out by eight government agencies, including the Ministry of Commerce. For scrappage and replacement, the key criteria are: individual car buyers who scrap a petrol vehicle registered before 30 June 2013, a diesel vehicle registered before 30 June 2015, or a new energy vehicle (NEV) registered before 31 December 2019, and purchase a new NEV passenger car listed under the purchase tax exemption catalogue, will receive a cash subsidy of 12% off the vehicle's retail price, capped at RM20,000. For the purchase of internal combustion engine (ICE) cars with an engine capacity of 2.0 litres and below, the rebate rate is 10%, capped at RM15,000. Each individual consumer is eligible for only one scrappage-replacement or trade-in subsidy throughout the campaign period, and the old vehicle must have been registered under the applicant's name prior to 8 January 2025.

Scrappage and Deregistration Workflow

To scrap a vehicle, the owner must hand it over to a licensed end-of-life vehicle (ELV) recycling and dismantling facility. After verifying the vehicle's identity and documentation, the facility dismantles the unit and issues an official "End-of-Life Motor Vehicle Recycling Certificate". The vehicle owner then presents this certificate to the traffic administration authority to complete the official cancellation of registration. In 2025, China's total volume of scrapped vehicle recycling reached 10.187 million units, marking a year-on-year surge of 49.5% as the automotive recycling industry enters a high-growth trajectory.

Recycling and Dismantling Standards

The recycling and dismantling of end-of-life vehicles must comply with the "Administrative Measures for the Recycling of Scrapped Motor Vehicles" and its operational guidelines. Dismantling enterprises must maintain facilities and technical capabilities adhering to national standard GB 22128 ("Technical Specifications for End-of-Life Motor Vehicle Recycling and Dismantling Enterprises"). Furthermore, the mandatory national standard "Technical Specification for Traceability of Transactions of Reusable and Remanufactured Parts from End-of-Life Motor Vehicles" (GB/T 45084-2024), taking effect on 1 June 2026, establishes structured transaction traceability for reusable second-hand components and remanufactured parts, shifting the sector from crude scrap processing toward high-value, digitalised green recycling.