Nitin Gadkari congratulated and thanked the manufacturers who have joined the fleet modernization program and encouraged others to follow their lead. (PTI file)
Commercial vehicle manufacturers are willing to offer discounts for two years and passenger car manufacturers are willing to offer discounts for one year, an official statement said
Union Minister Nitin Gadkari on Tuesday met a delegation of CEOs of the Society of Indian Automobile Manufacturers (SIAM) and major commercial and passenger vehicle manufacturers agreed to provide discounts based on scrappage certificates.
Commercial vehicle manufacturers are willing to offer discounts for two years and passenger car manufacturers are willing to offer discounts for one year, an official statement said.
Addressing a meeting at the Bharat Mandapam, Gadkari congratulated and thanked the manufacturers who have joined the fleet modernization program and encouraged others to follow their lead.
“In response to Gadkari's suggestion, several leading commercial and passenger vehicle manufacturers have agreed to offer discounts on new vehicle purchases with valid deposit certificates when old vehicles are scrapped. This measure is part of a drive to promote a circular economy, promote cleaner use on roads, An important step towards safer, more efficient vehicles.
“These discounts will further incentivize the scrapping of end-of-life vehicles, thereby “ensuring safer, cleaner and more efficient vehicles on the road,” the report said.
Car ride
Passenger car manufacturers Maruti Suzuki India Ltd; Tata Motors; Mahindra & Mahindra; Hyundai Motor India; Kia Motors; Toyota Kirloskar; Honda Motor; JSW MG Motor; Renault India; Nissan India; Skoda Volkswagen India is offering a discount of 1.5 per cent of the showroom price of the new car or Rs 20,000 (whichever is lower) to the owners of passenger cars scrapped in the last six months.
“Details of end-of-life vehicles will be linked to the Vahan system. The company can voluntarily offer additional discounts on specified models. Individual passenger car manufacturers are free to offer this discount only on identified models within their vehicle portfolio. Since cars are not are exchanged, but scrapped, so between exchange and scrappage discounts, only scrappage discounts apply,” it added.
Mercedes-Benz India is offering a flat discount of Rs 25,000, which will be higher than all existing discounts.
commercial vehicle
Commercial vehicle manufacturers Tata Motors; Volvo Eicher Commercial Vehicles; Ashok Leyland; Mahindra & Mahindra; Power Electric; Isuzu Motors and SML A discount of 3% on the ex-showroom price is provided for commercial trucks weighing over 3.5 tonnes and a discount of 1.5% on the ex-showroom price for commercial trucks with a total gross weight of less than 3.5 tonnes scrapped within the past six months.
“For the transaction deposit certificate of scrapped commercial vehicles, the discount provided to the purchaser of the vehicle is equivalent to 2.75% of the showroom price of commercial trucks with a scrapped gross weight of more than 3.5 tons; for commercial trucks with a scrapped gross weight of less than 3.5 tons, the statement said , you can enjoy a discount equivalent to 1.25% of the showroom price of the trading inventory.
It is said the scheme could also be considered for buses and vans.
