The central government and the automobile industry have reached an agreement to offer discounts to customers who buy a new car and provide a scrapping certificate.
This initiative is aimed at easing the cost for customers during the upcoming festive season.
Union Road Transport and Highways Minister Nitin Gadkari discussed this with CEOs from the Society of Indian Automobile Manufacturers (SIAM).
The meeting also included Minister of State for Road Transport and Highways Harsh Malhotra,
Minister of State Ajay Tamta, and Secretary of the Ministry of Road Transport and Highways (MoRTH) Anurag Jain.
Discounts Offered by Car Manufacturers
Maruti Suzuki, Tata Motors, Hyundai, Kia, Toyota, and other car manufacturers will provide a discount of 1.5% or Rs 20,000 on a new car when a customer presents a scrapped vehicle.
Mercedes Benz India is offering an additional flat discount of Rs 25,000 on top of this.
Maruti’s RMJ Motors dealership confirmed that customers can benefit up to Rs 25,000 with the scrapping certificate.
Discounts for Commercial Vehicles
For commercial vehicles, manufacturers like Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors,
and SML Isuzu plan to offer discounts of 3% of the ex-showroom price for vehicles over 3.5 tonnes that are scrapped.
Vehicles under 3.5 tonnes will receive a 1.5% discount.
Additionally, discounts of 2.75% and 1.25% will be available for those using traded certificates of deposit to scrap heavy and light commercial vehicles, respectively.
Vehicle Scrapping Policy Overview
The Vehicle Scrapping Policy, which began on April 1, 2022, aims to phase out old and polluting vehicles.
Under this policy, states and union territories will offer discounts on new vehicle purchases when an old vehicle is scrapped.
Nitin Gadkari has mentioned plans to establish an automobile scrapping facility within 150 km of each city center.
