Business

Automakers To Offer Discounts On New Vehicles For Scrapping Old Ones: Nitin Gadkari

Union Minister Nitin Gadkari announced that vehicle manufacturers will offer discounts on new purchases for buyers who scrap older vehicles with a valid Certificate of Deposit. The decision followed a meeting with CEOs of the Society of Indian Automobile Manufacturers (SIAM).

Gadkari shared on X, “Automakers have agreed to provide discounts for new vehicles against scrapping old ones. This will boost our Circular Economy by promoting cleaner and more efficient vehicles.”

Discounts to Support Vehicle Scrappage Policy

Indian automakers are expected to offer a 1.5-3.5% discount for buyers scrapping their old vehicles. Gadkari praised the industry’s involvement in the Vehicle Fleet Modernisation Programme. He had earlier highlighted the need for 1,000 scrapping centers and 400 automated fitness test centers nationwide.

Prime Minister Narendra Modi launched the National Vehicle Scrappage Policy in August 2021. The policy, effective since April 2022, offers up to a 25% tax rebate on road tax for vehicles bought after scrapping older ones.

Policy to Reduce Pollution and Create Jobs

The scrappage policy mandates fitness tests after 15 years for commercial vehicles and 20 years for personal vehicles. Gadkari emphasized that the policy will help phase out polluting vehicles, create jobs, and turn India into a scrapping hub in South Asia.

Also Read: Indian Equity Markets Close Flat Amid Mixed Global Sentiments

Ajaypal Choudhary

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