Auto manufacturers to offer discount for those scrapping old vehicles to buy new ones, says Gadkari
By Team Asianet Newsable | First Published Aug 28, 2024, 11:40 AM ISTSeveral commercial and passenger vehicle manufacturers will offer discounts for buying new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit, Minister of Road Transport & Highways Nitin Gadkari said on August 27.
Union Minister of Road Transport and Highways, Nitin Gadkari, announced on Tuesday that passenger and commercial vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older ones of buyers with a valid Certificate of Deposit.Β The minister convened a meeting with the CEOs of the Society of Indian Automobile Manufacturers Association (SIAM) where important concerns facing the car industry were discussed and a decision was made.
Taking to X, Gadkari said, "I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit. This initiative will significantly advance our Circular Economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads."
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He expressed his gratitude to the automakers for their initiative in joining the Vehicle Fleet Modernisation Program. Major Indian automakers are probably going to provide customers who destroy their old cars in order to purchase new ones a discount of 1.5β3.5 percent. The minister had stated the previous year that the nation need 400 automated fitness test centres and 1,000 car scrapping facilities. The minister had stated that India could serve as a hub for scrapping in South Asia, pointing out that the National Vehicle Scrappage Policy benefits all parties involved.
In August 2021, Prime Minister Narendra Modi announced the National Vehicle Scrappage Policy, stating that it will facilitate in the phase-out of outdated and environmentally harmful cars while simultaneously advancing a circular economy.
On April 1, 2022, the policy on automobile scrappage was implemented. The Centre claimed that under the scheme, states and Union Territories (UTs) will reimburse up to 25% of the road tax on new cars that are bought after old cars are scrapped. The policy, which was unveiled in the Union Budget 2021β22, mandates fitness checks for commercial cars after 15 years of ownership, while personal vehicles have a 20-year timeframe.
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