Commercial, Passenger Vehicle Manufacturers To Offer Discounts On Scrappage Certificate

The recent initiative from Union minister Nitin Gadkari and the Society of indian Automobile Manufacturers (SIAM) is a notable advancement in India's Vehicle Fleet Modernization Programme. Here’s a summary of the key points:

Overview of the Scheme:
Objective: To promote the scrapping of old vehicles and encourage the purchase of newer, safer, and more efficient vehicles.
Discounts Offered:
Passenger Vehicles: Discounts of up to 1.5% of the ex-showroom price or ₹20,000, whichever is less, for vehicles scrapped within the last six months. Mercedes Benz india is providing an additional flat ₹25,000 discount.
Commercial Vehicles: Discounts of up to 3% of the ex-showroom price for commercial cargo vehicles over 3.5 tonnes GVW, and 1.5% for those under 3.5 tonnes GVW.
Implementation Details:
Eligibility: Discounts apply to new vehicle purchases when the old vehicle is scrapped with a valid Scrappage Certificate.
Duration: Discounts for commercial vehicles will be available for two years, and for passenger vehicles, the offer will last one year.
Process: Vehicle details must be linked in the Vahan system. Discounts are applicable for scrapped vehicles only, not for exchanged vehicles.
Manufacturers Involved:
Passenger Vehicles: Includes maruti Suzuki, Tata Motors, mahindra & mahindra, Hyundai, Kia, Toyota, Honda, MG Motor, Renault, Nissan, Skoda, and Volkswagen.
Commercial Vehicles: Includes Tata Motors, Volvo Eicher, ashok Leyland, mahindra, Force Motors, Isuzu, and SML Isuzu.
Additional Notes:
Some manufacturers might offer additional discounts on specific models.
The scheme is also being considered for buses and vans.
This initiative is aimed at enhancing road safety, reducing emissions, and supporting the circular economy by encouraging the replacement of older vehicles with newer, cleaner models.