Nitin Gadkari, the Union Minister of Road Transport & Highways, announced that several leading automobile manufacturers are set to offer significant discounts to buyers who scrap their old vehicles and purchase new ones. This move, part of the government’s efforts to promote a Circular Economy, aims to reduce pollution and bring safer, more efficient vehicles onto Indian roads.
Gadkari confirmed that these discounts, ranging from 1.5% to 3.5%, will be available to those who scrap their old vehicles and present a valid Certificate of Deposit when purchasing a new car. This initiative is expected to encourage more people to retire their aging, polluting vehicles in favor of modern, environmentally friendly alternatives.
Despite the government’s introduction of the scrappage policy, the impact has been limited so far. Industry leaders, including SIAM president Vinod Aggarwal, have emphasized the need for additional incentives to make vehicle scrapping more attractive. The newly announced discounts are seen as a step in the right direction, offering tangible benefits to consumers while supporting the government’s environmental goals.
