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The Indian automotive industry is taking significant steps towards promoting cleaner and more efficient vehicles on the road. In a recent move, major car manufacturers including Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motor, Kia Motors, Toyota Kirloskar, Honda cars, Nissan India, Skoda Volkswagen, Renault, and JSW Motor, have announced a 1.5% discount on the ex-showroom price, or a maximum of Rs 20,000, for new vehicles purchased against the scrapping of old cars. This discount will be available for the next year.
Moreover, Mercedes Benz has also joined this initiative, offering a flat Rs 25,000 discount for customers who scrap their old cars. The move extends beyond passenger vehicles, as major commercial vehicle manufacturers such as Tata Motors, Volvo Eicher, Ashok Leyland, Mahindra & Mahindra, Force Motors, and SML Isuzu are offering discounts ranging from 1.5% to 3% on the ex-showroom price for new commercial cargo vehicles, provided the customer presents a scrappage certificate for an old vehicle. This offer will be valid for two years.
This decision was made during a meeting between Union road transport minister Nitin Gadkari and the Society of Indian Automobile Manufacturers (SIAM) CEO’s delegation. The minister expressed his satisfaction with the automakers' response to his recommendation, highlighting that this initiative will promote a circular economy, ensuring the use of cleaner and more efficient vehicles on Indian roads. It is important to note that these discounts are in addition to the scrap value paid by registered scrappage centres and any other standard discounts offered by the companies.
The initiative requires customers to present a valid Certificate of Deposit (CoD) issued within the previous six months of buying a new vehicle. The scrapped vehicle details will be linked to the Vahan system, and companies can offer additional discounts on specific models. For commercial goods vehicles, a 3% discount will be offered for vehicles weighing over 3.5 tonnes (trucks), while a 1.5% discount will apply to vehicles weighing less than 3.5 tonnes. The government has also authorized the trading of scrappage certificates. Individuals purchasing a new commercial goods vehicle against a 'Traded Certificate of Deposit' will receive a 2.75% discount for vehicles over 3.5 tonnes and a 1.25% discount for vehicles under 3.5 tonnes.
Source: Major automakers announce discounts for 1-2 yrs for vehicle bought against scrapped one