Manufacturers to offer discounts of up to 3.5% for those scrapping old vehicles
Minister of Road Transport & Highways Nitin Gadkari said on August 27 that several commercial and passenger vehicle manufacturers will give discounts for purchasing new cars in exchange for scrapping older vehicles with a valid Certificate of Deposit. Because of this, automakers will probably provide customers who scrap their old cars to purchase new ones a 1.5 to 3.5 percent discount.
Nitin Gadkari said "I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit. This initiative will significantly advance our Circular Economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads."
On August 27, Tuesday at Bharat Mandapam, Union Minister of Road Transport and Highways Nitin Gadkari presided over a meeting with the SIAM delegation and discussed urgent problems facing the car sector. But this scrappage discount will take the place of the consumers' previous discount for trading in their cars to auto dealers. Additionally, car manufacturers are allowed to give these savings on a limited number of vehicles from their lineup.
A discount of 1.5 percent of the ex-showroom price of a new automobile, or Rs 20,000, whichever is less, would be given by manufacturers of passenger cars, including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai Motor, Kia, Honda Cars, Toyota, JSW MG Motor, Renault India, Nissan India, Skoda, and Volkswagen India. This discount is only good for a single year and applies to passenger cars that the owner has demolished within the past six months.
A discount of 3 percent of the ex-showroom price is available for commercial cargo vehicles with a gross vehicle weight of more than 3.5 tons, and a discount of 1.5 percent is available for vehicles with a gross vehicle weight of fewer than 3.5 tons. These manufacturers include Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu. Only the car's owner is eligible to claim the bonus.
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