India to introduce vehicle scrappage policy: What it means for Auto Industry?
Close

India to introduce vehicle scrappage policy: What it means for Auto Industry?

Latest News
Est. Reading Time:
2 mins

India to introduce vehicle scrappage policy: What it means for Auto Industry?

The Road Transport and Highways Minister Nitin Gadkari on Thursday announced that they will introduce the much-awaited vehicle scrappage policy as it will benefit the domestic automobile sector. The automobile sector, especially the manufacturers were struggling even before Covid situation, the lockdown witnessed the auto companies record zero sales for the first time in history.

The new vehicle scrappage policy is awaiting clearance from the Finance Ministry and Nitin Gadkari. In a video conference with the Society of Indian Automobile Manufacturers (SIAM), he said “I have been trying to pursue the scrapping policy for the last two years. We need cooperation from other ministries, stakeholders. I have told the secretary to follow it up as soon as possible. This is one of the steps to boost the industry,”.

The vehicle scrappage policy is aimed towards old polluting vehicles on Indian roads and directs them to the scrapyard. As the 15-year-old vehicles have a low resale value, these vehicles can be sent to scrapyards and provide the owner with some monetary benefits which will have two distinct benefits such as financial aid for the owners to get rid of such vehicles and putting these polluting vehicles out to help the environment. There could, however, be other equally important benefits like vehicle owners opting to buy new vehicles post scrapping their old one, which could boost demand, and re-using the scrap materials like steel and aluminum for manufacturing new vehicles.

Scrapyards consists of shredders which will help recycle the almost redundant vehicle and help ease the tension on the environment. The challenge may be to define the set process and to get rid of parts that cannot be used once again in an environment-friendly manner. And keeping in mind that there are likewise questions relating to the benefits add up to be given to owners getting their old vehicles – how much, who will give and what rules to be followed, the conspicuous and multi-faceted advantages of the arrangement itself is sponsored by most.

Is vehicle scrappage policy the answer to boost new car sales?
Meanwhile, If you’re looking to buy or sell a Used Car Visit Cars24.com for Best Price, Instant Payment & Free RC Transfer