Bonus discounts on scrapping old vehicles announced by Nitin Gadkari - All details

Nitin Gadkari, Minister of Road Transport and Highways, Government of India, has just announced that OEMs have agreed to provide bonus discounts to customers scrapping their old vehicle in exchange for a new one. This is in line with the scrappage policy that has been in effect in Delhi NCR, which requires petrol vehicles older than 15 years and diesel vehicles older than 10 years to be scrapped due to increasing air pollution. Here’s everything you need to know about the newly-announced bonus discounts and old vehicle scrapping benefits in India.

Meeting with SIAM

After a meeting with various heads of OEMs from SIAM (Society of Indian Automobile Manufacturers), Nitin Gadkari announced on Twitter that several passenger and commercial vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Scrappage Certificate. He further stated that this initiative will significantly advance their circular economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on the roads.

Discount on passenger vehicles

Mass market manufacturers including Tata Motors, Mahindra & Mahindra, Hyundai Motors, JSW MG, Kia India, Nissan India, Renault India, Skoda Volkswagen India and Honda Cars India are offering discounts equivalent to 1.5% of the ex-showroom price of a new car or up to Rs 20,000, whichever is less, for vehicles scrapped in the last six months. Mercedes-Benz has announced a flat discount of Rs 25,000 in addition to any existing offers.

Also Read: Rs 73,000 Crore Worth Of Unsold Cars At Dealerships In India - Attractive Discounts Incoming?

Maruti Suzuki Nexa scrappage bonus

Manufacturers like Maruti Suzuki were already offering a scrappage bonus of Rs 5,000, which was additionally provided on the specified exchange bonus for the particular car model. More and more manufacturers are now joining this initiative and have started to provide scrappage bonuses on their cars.

Discount on commercial vehicles

The discount on commercial vehicles varies according to the Gross Vehicle Weight (GVW) of the scrapped vehicle. Manufacturers like Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors, and SML Isuzu have announced discounts on purchase of a new commercial cargo vehicle.

The discount will be equivalent to 3% of the ex-showroom price of a new commercial cargo vehicle for vehicles with a GVW of more than 3.5 tonnes scrapped in the last six months. Discount against Scrappage Certificate in this case would be equivalent to 2.75%. 

The discount offered will be equivalent to 1.5% instead of 3% if the vehicle scrapped has a GVW of less than 3.5 tonnes. Discount against a Scrappage Certificate in this case would be equivalent to 1.25%. These commercial vehicle discounts may be extended to buses and vans.

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