Commenting on the scrappage policy, Venkatram Mamillapalle, Country CEO & Managing Director, Renault India Operations said, “This is indeed a historic moment in the Indian automotive sphere and will go a long way in setting new benchmark for India in the Global context. We are on the cusp of a major breakthrough in the industry, firstly we saw advanced emission standards being adopted by the sector and now a move that is momentous on multiple fronts, besides presenting a huge business opportunity for the OEMs, the social impact of this move will be revolutionary, employment generation, significantly reducing pollution and bolstering road safety are just a few amongst many that come to mind.
The announcement today will bring the Indian automotive industry to match with the international standard, besides offering a much-needed reprieve for the Auto, Steel and Electronics industry, that was needing resuscitation after the onslaught of the pandemic. The policy is a welcome move for the entire automobile industry, which is the 4th largest in the world today, this move will ensure adoption of better technology on Indian roads thus significantly lowering carbon emissions for the country. Scrapping of older vehicles in a scientific and environment-friendly manner will help to reduce pollution and also make roads safer.
A welcome mover for the OEM’s the new policy also provides significant incentives to customers / vehicle owners, a 5% rebate from automakers, and various incentives from the government will encourage people to come forward towards replacement of their old vehicles and create a positive impetus for the country.
The guidelines will prove to be a boon in the long run, exciting the customers to newer & efficient vehicles and in turn help India elevate to becoming the hub of automobile manufacturing, corroborating the coveted ‘Make in India’ initiative. We strongly believe this policy will kick start the revival of the Indian auto sector and the overall economy ”
Tata Motors Spokesperson said, “The proposed scrappage policy is a welcome move and a step in right direction to promote safer and cleaner vehicles in India. Provisions in the policy such as compulsory fitness certificate, dis-incentivizing re-registration of commercial vehicles after 15 years and private vehicle after 20 years, would encourage removal of old & polluting vehicles from the system. Largely, it addresses intents of all the stakeholders from low import bill for scrap and crude oil, job opportunities for MSMEs, possibility of upside in new vehicle sales for OEMs, low operation cost for vehicle owners, safer and cleaner vehicle for consumers and a sustainable environment for all. We are optimistic and look forward to seeing how various provisions of this policy encourage consumers to voluntarily come forward and scrap their old & unfit vehicles. We will await the actual release of the policy to go through the fine-print and the nuances, in order to understand its impact on the industry, at large and work closely with all stakeholders, towards the larger objective of the policy, set by the Government.”
Vinkesh Gulati, President – Federation of Automobile Dealers Associations (FADA) said, “The Central Government had announced scrappage policy during the budget speech of Hon’ble Finance Minister Shri Nirmala Sitharaman ji. Only fine prints of the same were awaited which today, has been announced by Shri Nitin Gadkari ji.
Indian automobile industry has already upgraded to one of the most advanced emission standards. While new vehicles will be least polluting, vehicles which are old creates enormous pollution with least safety standards will now be eligible for scrappage thus making roads safer and air cleaner. The guidelines and advice announced today are in the right direction and now, the State Governments and OEMs have to do their part to make it a success.
Scrappage value of vehicle in range of 4-6% of the ex-showroom price, rebate of upto 25% for PV and 15% for CV by State Governments on Road Tax, 5% discount from OEM’s on new vehicle and registration fee being waived off will definitely help to excite the customer and motivate him to scrap his old vehicle. It will also revive the ailing CV segment and in turn will boost State exchequer’s revenue on sale of new vehicles.”
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