Vehicle Scrappage Discounts: Auto Majors Offer Incentives

New Delhi, Aug 27 (PTI) Ahead of the festive season, several leading commercial and passenger vehicle manufacturers have agreed to offer discounts on new vehicle purchases against scrapped old vehicles, an official statement said on Tuesday.

The statement further said this initiative is a significant step forward in advancing India's circular economy, promoting the use of cleaner, safer and more efficient vehicles.

Union Road Transport and Highways Minister Nitin Gadkari on Tuesday chaired a meeting with the SIAM delegation at Bharat Mandapam, where he addressed pressing issues in the automobile industry.

"During this interaction, responding positively to the advice of Hon'ble Minister RT&H and recognising the importance of Fleet Modernisation and Circular Economy, multiple Commercial Vehicle Manufacturers and multiple passenger vehicle manufacturers have agreed to offer discounts for a limited period against a certificate of deposit (Scrappage Certificate)," the statement said.

It said commercial vehicle manufacturers are willing to offer discounts for a limited period of two years and passenger vehicle manufacturers are willing to offer discounts for a limited period of one year.

The statement noted that these discounts will further incentivise the scrapping of vehicles, thereby ensuring the plying of safer, cleaner and more efficient vehicles on the roads.