The Union Minister for Road Transport & Highways, Nitin Gadkari, held a meeting with representatives from passenger and commercial vehicle manufacturers. He urged the industry to provide discounts on new vehicle purchases to customers who scrap their old vehicles. The meeting with the Society of Indian Automobile Manufacturers (SIAM) CEOs took place at Bharat Mandapam in New Delhi, where it was later confirmed that the automobile manufacturers consented to the minister’s proposal.
On his official social media account, the Union Transport Minister announced, “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.” On further explaining the importance of this, “This initiative will significantly advance our Circular Economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads,” he added.
What are the new discounts for passenger vehicles?
According to reports, leading passenger vehicle manufacturers like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, Kia, Honda, Toyota, JSW MG Motor, Renault India, Nissan India, Skoda and Volkswagen India have all agreed to offer a discount of 1.5 per cent of the ex-showroom price of new car, or Rs 20,000, whichever is less. This discount can be availed if the owner scraps a passenger vehicle within the last six months, with the details of the scrapped vehicle being linked to the Vahan system. Manufacturers may also choose to offer additional discounts on specific vehicle models within their portfolio. It should be noted that if a vehicle is being scrapped, only the scrappage discount is applicable, and not any additional exchange offer.
Benefits for commercial vehicles
According to the official statement, passenger vehicle companies like Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors and SML Isuzu will offer benefits of 3 per cent on ex-showroom prices for commercial vehicles more than 3.5 tonnes and a discount equivalent to 1.5 per cent on ex-showroom prices for CVs less than 3.5 tonnes.
The Union Minister said, “Congratulations and gratitude to the automobile manufacturers who have taken the initiative to participate in our Vehicle Fleet Modernization Programme. I trust that others will soon follow their lead and join us in this important endeavour.”
Commenting on the same, Mahindra issued a statement syaing, “Mahindra is proud to support the Government’s Fleet Management Program, which is a significant step toward ensuring cleaner, safer, and more efficient vehicles on our roads. We are committed to contributing to this important initiative and are pleased to offer attractive discounts on the purchase of new Mahindra vehicles in exchange for the scrapping of older vehicles, provided they come with a valid Certificate of Deposit. This collaboration reflects our dedication to promoting sustainable mobility and enhancing road safety across the nation.”
