Nitin Gadkari, Minister of Road Transport and Highways, Government of India, announced on Tuesday that many OEMs in India have agreed to provide bonus discounts to customers scrapping their old vehicle in exchange for a new one.
After a meeting with various stakeholders from SIAM, Nitin Gadkari said that several passenger & commercial OEMs have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Scrappage Certificate (SC).
The minister remarked that this initiative will significantly advance the government’s circular economy efforts, ensuring cleaner, safer, and more efficient vehicles on the roads.
Tata, Mahindra, Hyundai, JSW MG, Kia, Nissan, Renault, Skoda, Volkswagen and Honda 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.
Manufacturers like Maruti Suzuki were already offering a scrappage bonus of Rs 5,000, which was provided in addition to the specified exchange bonus for the particular car model.
Tata, Volvo Eicher, Ashok Leyland, Mahindra, Force and Isuzu are offering discounts equivalent to 3% of the ex-showroom price of a new commercial cargo vehicle for vehicles with a Gross Vehicle Weight (GVW) of more than 3.5 tonnes scrapped in the last six months. Discount against SC 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%. The commercial vehicle discounts may be extended to buses and vans.