Several commercial and passenger vehicle manufacturers will offer discounts for buying new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit, said Nitin Gadkari, the minister of Road Transport & Highways.
Big Discount Offerings While Purchasing New Vehicle & Scrapping Old One
While advancing the Circular Economy efforts, Auto majors are most likely to offer 1.5-3.5% discounts for buyers scrapping old vehicles to buy new ones.
Not only that, some of the top luxury car makers have agreed to a discount of around Rs 25,000 discount.
Similarly, some others are also expected to put a ceiling on the maximum amount, said the sources.
Further, 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.”
Owing to this latest development, several auto majors are likely to offer a 1.5-3.5 percent discount to buyers who are willing to scrap their old vehicles in order to buy a new one, as per the report.
Need Of Something More
“We are expecting that the government could do something more on the incentives for the scrapping of vehicles, because the scrappage policy is already in place but we have not seen much impact of that,” said Vinod Aggarwal, SIAM president earlier.
Adding, “so therefore, to give further boost to the scrapping of old polluting vehicles, I think something needs to be done.”
Interestingly, despite so many efforts by the government, voluntary scrapping of vehicles has not gained pace for several reasons.
As of date, around 1.2 lakh vehicles have been scrapped at registered scrapping centers.
Out of these, 61,000 are government vehicles which are older than 15 years.
Now they have a target to scrap around 90,000 old government vehicles by March 2025.
Considering the process, after the vehicle is scrapped, the buyers can take the certificate and claim the discount.
Considering the current system of discounts, it is quite opaque and subject to market demand.
Although, it is yet not clear how the automobile companies intend to ensure that the discount scheme is implemented in a transparent manner.
