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The Indian automotive industry is taking a significant step towards promoting cleaner and more efficient vehicles by offering discounts to customers who purchase new vehicles against the scrapping of their older vehicles. This initiative, announced by major car and commercial vehicle manufacturers, comes as a response to the Indian government's push for a cleaner and safer transportation system.
The discounts, applicable for both passenger and commercial vehicles, range from 1.5% to 3% of the ex-showroom price, with a maximum cap of Rs 20,000 for passenger vehicles. Notably, luxury car manufacturer Mercedes Benz is offering a flat Rs 25,000 discount for customers who scrap their old vehicles. These discounts are valid for a period of one to two years, depending on the vehicle type.
The initiative is being hailed as a positive step towards promoting a circular economy within the automotive sector. By encouraging the scrapping of older and less efficient vehicles, the government aims to reduce pollution levels, improve road safety, and enhance overall efficiency. The discounts offered by automakers are expected to further incentivize consumers to opt for newer, safer, and more fuel-efficient vehicles.
The scrappage certificates or Certificates of Deposit issued by registered scrappage centers are crucial for availing the discounts. Vehicle manufacturers are accepting certificates issued within the previous six months of purchasing a new vehicle. This measure aims to ensure the authenticity of the scrapping process and prevent any fraudulent activities. The details of the scrapped vehicles are linked to the Vahan system, a national vehicle registration database, further strengthening the traceability of the program.
Source: Major automakers announce discounts for 1-2 yrs for vehicle bought against scrapped one