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Key Vehicle Scrappage Programs in Various Countries 

  • March 2016
  • 81 pages
  • Frost & Sullivan
Report ID: 3748567


Table of Contents

Key Vehicle Scrappage Programs in Various Countries : A Study of Best Practices Regarding Formulation and Implementation of Scrappage Programs

The research provides an analysis of the vehicle scrappage programs in various countries, with a detailed reflection on five scrappage programs. The aim of this study is to bring out best practices and takeaways from scrappage programs in various countries which would assist other countries planning to formulate and implement a scrappage program. The study provides an overview of key scrappage programs such as Car Allowance Rebate System in the United States, Certificate of Entitlement in Singapore, Vehicle Scrapping and Recycling Program in Egypt, Fleet Renewal ‘Rabla’ (Scrappage) Program in Romania, and Plan ViVe and 2000E Program in Spain. The study period of the research is 2005 to 2015, with 2015 as the base year.

Key Findings

Scrappage programs are typically implemented for reducing congestion, increasing road safety, reducing emissions, and boosting sales of new vehicles.
Scrappage programs in the last years (2005–2015) were reviewed. At least countries implemented a scrappage program during the period.
Among all the programs reviewed, scrappage programs (US, Romania, Spain, Singapore, and Egypt) were found to be distinct in terms of objectives or operations.
Environmental concerns were the common objective behind the scrappage across all countries profiled.
Compliance is mandatory only in Singapore and Egypt.
The most popular type of incentive is cash discounts with defined quantum.
The primary objective of the scheme of the US and Spain was to push the sales of new vehicles
All 5 countries covered passenger vehicles, but Egypt’s policy focused specifically on PVs used as taxis.
Singapore’s Vehicle Quota System (VQS) regulates road congestion and promotes use of efficient new vehicles.
Out of the 5 profiles, the US is the only example of a developed country formulating a scrappage scheme. It is noteworthy that Singapore formulated its policy in 1990.
A scrappage program aimed at reducing congestion would have low public acceptance unless the country has robust public transport infrastructure.
Romania’s case shows that the scrappage program would fail to meet some or all of the objectives if it is not complemented by other programs/policies/laws.

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