Govt Asks Car Makers To Give Discounts For Scrapping Old Car & Buying Electric Cars; Will It Work?

In the future India will achieve global standards of crash safety, body designs and fuel efficiency.

Nitin Gadkari said that electric vehicle (EV) manufacturers should offer discounts to those who scrapped their internal combustion (IC) engine-powered old cars.

He also said that the government intends to shift public transport and logistics to 100% electric but didn’t elaborate.


Incentivising Scrappage Of Old Vehicles

An official at the road transport and highways ministry said that the Centre will soon direct state governments to provide up to 25% rebate on road tax.

The new National Automobile Scrappage Policy would apply to vehicles bought after scrapping old vehicles.

Other Policy Provisions

Under the policy, India will also set up a well-established network of vehicle scrapping units to deal with old, unfit and polluting private and commercial vehicles.

The policy also provides for fitness tests of personal vehicles after 20 years and commercial vehicles after 15 years.

Improving EV Sales And Affordability

Gadkari added that by 2030, the government is aiming towards EV sales penetration of 30% for private cars, 70% for commercial vehicles, 40% for buses, and 80% for two and three-wheelers.

He said that EVs will become more affordable in the future propelled by indigenous low-cost battery technology, localisation of EV components, and huge domestic demand.

He also promised that coming to crash safety, body designs, fuel efficiency and mass emission norms, India will be on the same level as international standards.

Future Innovations

Gadkari named green-hydrogen to be the fuel for the future which could be used in heavy long-distance trucks, buses, marine and aviation.

Other innovations the government is exploring includes development of low cost electrolyzers, and utilising municipal sewage water for energy generation.

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