Scrap old vehicles to get discounts on new; Nitin Gadkari
Nitin Gadkari says he has successfully convinced automobile manufacturers to offer discounts on new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit.
“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,” said Nitin Gadkari, Minister for Road Transport & Highways, Government of India.
Responding to Gadkari’s call, most passenger and commercial vehicles manufactures have agreed to offer 1.5-3.5 percent discount to buyers who have scrapped their old vehicles with a valid certificate of deposit.
Earlier, Society of Indian Automobile Manufacturers (SIAM) president, Vinod Aggarwal had said, “We are expecting that the government could do something more on the incentives for the scrapping of vehicles, because the scrappage policy is already in place but we have not seen much impact of that.”
Circular Economy Benefits
When automobile manufacturers offer discounts to vehicle buyers for scrapping old vehicles, more and more owners are motivated to discontinue using their old vehicles, scrap them and buy new vehicles. When more owners scrap and buy new vehicles, the demand for new vehicles increases, boosting automakers’ sales.
Needless to say, another beneficiary of this circular economy is the environment. When older vehicles are scrapped and replaced by more efficient new vehicles that comply with the latest pollution norms, the environment wins!
