Union Minister for Road Transport and Highways, Nitin Gadkari announced that passenger and commercial vehicle manufacturers have agreed to offer discounts on purchase of new vehicles on scrapping of old vehicles with a valid certificate of deposit. The decision was taken at a meeting chaired by the minister with the CEOs of the Society of Indian Automobile Manufacturers Association (SIAM) to discuss key issues facing the auto sector.
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On X, Gadkari said, “I am happy to inform that, in response to my recommendation, many commercial and passenger vehicle manufacturers have agreed to offer discounts on purchase of new vehicles in lieu of scrapping old vehicles with a valid certificate of deposit. This initiative will significantly advance our circular economy efforts, ensuring that cleaner, safer and more efficient vehicles ply on our roads,” he said.
The statement said that during the talks, positively considering the advice of the Road Transport and Highways Minister and recognising the importance of modernisation of vehicles and economy with optimal use of resources, many commercial vehicle and passenger vehicle manufacturers have agreed to give discounts for a limited period in lieu of deposit certificates (scrappage certificates). It said that commercial vehicle manufacturers are ready to give discounts for two years and passenger vehicle manufacturers for one year. The statement said that this discount will encourage the conversion of old vehicles into scrap. This will ensure safer, cleaner and more efficient vehicles on the roads.
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The statement further said that Mercedes Benz India has offered a direct discount of Rs 25,000, which will be in addition to all the existing concessions. According to the statement, passenger vehicle manufacturers like Maruti Suzuki India Limited, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Kia Motors, Toyota Kirloskar Motor, Honda Cars, JSW MG Motor, Renault India, Nissan India and Skoda Volkswagen India will give discounts on getting a new vehicle in exchange for scrapping the vehicle.
