Vehicle Scrapping Policy: You will get this much discount on scrapping old vehicles, know how much you will save on buying a new car

Vehicle Scrapping Policy: After a long deliberation and discussion, the central government and the automobile industry have agreed to give discounts to consumers buying new cars in exchange for scrapping certificates. This move is expected to provide relief to consumers before the festive season. Union Road Transport and Highways Minister Nitin Gadkari held detailed talks with a delegation of CEOs of the Society of Indian Automobile Manufacturers (SIAM).

Minister of State for Road Transport and Highways Harsh Malhotra, Minister of State for Road Transport and Highways Ajay Tamta and Secretary, Ministry of Road Transport and Highways (MoRTH) Anurag Jain were also present in the meeting.

What is vehicle scrapping policy:

Let us tell you that the aim of the Vehicle Scrapping Policy is a plan to phase out old and polluting vehicles in a phased manner. This policy, which will come into effect from April 1, 2022, will now provide discounts on new vehicles purchased after scrapping old vehicles in the states and union territories. In 2021, the government launched the National Vehicle Scrappage Policy to phase out unsuitable and polluting vehicles and Nitin Gadkari had said that he plans to develop an automobile scrapping facility within 150 km from the center of each city.

According to the Ministry of Road Transport and Highways (MoRTH), the project is expected to generate additional investment of about Rs 10,000 crore and 35,000 employment opportunities. Under this policy, private passenger vehicles older than 20 years and commercial vehicles older than 15 years will be deregistered if they fail to obtain a fitness certificate.

How much discount on passenger cars:

Maruti Suzuki, Tata Motors, Hyundai, Kia, Toyota and other passenger vehicle manufacturers will offer a discount of 1.5 percent or Rs 20,000 (whichever is less) on buying a new car in exchange for scrapped vehicles. Mercedes Benz India has announced a flat discount of Rs 25,000 in addition to the existing offer. It is possible that in the coming time some other companies may also announce additional discounts on buying a new car in exchange for scrap.

Discount on commercial vehicles:

Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors and other commercial vehicle manufacturers have agreed to offer a discount equivalent to 3 per cent of the ex-showroom price for scrapped commercial cargo vehicles weighing more than 3.5 tonnes. A discount of 1.5 per cent will be given for vehicles weighing less than 3.5 tonnes. Apart from this, a discount of 2.75 per cent and 1.25 per cent will be available respectively for buyers using traded certificates of deposit to scrap heavy and light commercial vehicles.

Let us tell you that the government is constantly making efforts regarding the scrappage policy. But despite all the efforts, the campaign to voluntarily convert vehicles into scrap has not gained momentum. A target has been set to convert 90,000 old government vehicles into junk by March 2025. The government has taken steps to set up 60 registered vehicle scrapping centers and 75 automated testing stations.