Car Manufacturers Offer Discounts Up To Rs 20,000 Under New Vehicle Scrapping Policy

Car manufacturers have agreed to offer discounts of 1.5 per cent of the ex-showroom price of a new car or Rs 20,000 whichever is lower, while truck manufacturers will offer discounts of up to 3 per cent with the launch of the Centre’s Vehicle Scrapping Policy, according to an official statement issued on Wednesday.

According to a statement from the Ministry of Road Transport and Highways, these Original Equipment Manufacturers’ (OEM) discounts are in addition to the scrap value that Registered Vehicle Scrapping Facilities (RVSFs) provide to the vehicle owners and the current incentives of Motor Vehicle Tax concession, waiver of fee for issuance of certificate of registration, and waiver of liabilities by the Government of India under the Vehicle Scrapping Policy linked to the Certificate of Deposit (CD) on purchase of a new vehicle, applicable in many states.

Mahindra Thar Roxx Price In India Revealed: Check Powertrain, Design, Features And More

According to a statement released by the Ministry of Road Transport and Highways, car and SUV manufacturers, such as Maruti Suzuki India Ltd., Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India, and Skoda Volkswagen India, are offering discounts of 1.5% of the ex-showroom price of a new car or Rs 20,000, whichever is less, against the passenger vehicle scrapped by the owner in the previous six months.

In addition to all current discounts, Mercedes Benz India is offering a flat discount of Rs 25,000. The Vahan system requires that the details of the scrapped car be connected.

Businesses may choose to voluntarily provide extra savings on specified models. Within their vehicle portfolio, individual passenger vehicle manufacturers may choose to offer this discount exclusively on the designated models.

According to a statement released by the Ministry of Road Transport and Highways, only the scrappage discount would apply because the car is only being scrapped and not exchanged.

The following manufacturers of commercial vehicles, namely Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu, offered discounts: 3% of the ex-showroom price for commercial cargo vehicles with more than 3.5 tonnes GVW that the owner scrapped within the last six months, and 1.5% of the ex-showroom price for those with less than 3.5 tonnes GVW.

A discount of 2.75 per cent of the ex-showroom price for scrapping a commercial cargo vehicle with a gross weight exceeding 3.5 tonnes and 1.25 per cent of the ex-showroom price against a traded CD for scrapping a commercial cargo vehicle with a gross weight under 3.5 tonnes would be given to the buyer of the vehicle against a traded CD of a scrapped commercial vehicle. This plan might also be used for vans and buses.

Mahindra Thar 5-Door Version To Be Called Thar Roxx, Launch On THIS Date | Watch Teaser

Through a network of RVSFs and Automated Testing Stations (ATS), the Ministry of Road Transport and Highways has initiated the Vehicle Scrapping Policy, also known as the Voluntary Vehicle Modernisation Program, to establish a framework for the gradual replacement of outdated, environmentally harmful vehicles throughout the nation.

Currently operating in the nation are more than 60 RVSFs spread across 17 states and UTs and more than 75 ATSs spread across 12 states and UTs, with many more in the works.

Tuesday’s detailed meeting between Union Minister for Road Transport & Highways Nitin Gadkari and a delegation of CEOs from the Society of Indian Automobile Manufacturers aimed to encourage the retirement of privately owned commercial and passenger cars and the replacement of the older, more polluting fleet with the newer, less polluting models.

Acknowledging the significance of both Fleet Modernisation and Circular Economy, several Commercial and Passenger Vehicle Manufacturers have decided to provide discounts for a restricted time in exchange for a CD (Scrappage Certificate).

According to the official statement, producers of passenger and commercial vehicles have expressed a willingness to provide discounts for a finite amount of time—two years and one year, respectively.

The statement went on to say that these savings will further encourage the discarding of older cars, guaranteeing the use of cleaner, safer, and more effective vehicles on the road.