Scrappage Policy can give a positive push to start a new and nascent automotive ecosystem, according to EY India’s report ‘Scrappage Policy for Automotive Sector is Here! Mobility Roadmap in Circular Economy’ released this week. “A key aspect of aggregated emission reduction is to increase circularity across the auto- motive industry’s value chain, including new processes and operating models related to end-of-life vehicles (ELVs),” the report noted. Vinay Raghunath, partner & automotive sector leader, EY India, added, “Automotive OEMs have an opportunity to revolutionise the recycling industry by evaluating interesting business models which would help them achieve both environmental and economic goals.”
The scrappage policy can provide benefits related to reduction in pollution, reduction in fuel import bill, improved recycle or re-use of parts, generation of replacement related demand and providing impetus to structuring this part of the automotive ecosystem, the report noted.
