Big Savings : In the implementation of the Centre’s Vehicle Scrapping Policy, car manufacturers have settled on giving discounts of 1.5 per cent of the ex-showroom price of a new car or Rs 20,000 whichever is less, while truck manufacturers will give discounts of up to 3 per cent, an official statement said here on Wednesday.
These Original Equipment Manufacturers (OEM) discounts are on top of the scrap value paid by Registered Vehicle Scrapping Facilities (RVSFs) to the vehicle owners, as well as other incentives for the owners under the Vehicle Scrapping Policy, currently offered by the Government of India in various states, such as Motor Vehicle Tax concession, waiver of fee for issuance of certificate of registration and waiver of liabilities under the Certificate of Deposit (CD) applicable for purchase of a new vehicle.
Mahindra Thar Roxx Price In India Announced: Powertrain, Design, Features & More ExplainedThis discount is applicable on the car or SUV, provided by vehicle manufacturers like Maruti Suzuki India Ltd., 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, and amounts to 1.5% of the ex-showroom price of a new car or Rs 20,000, whichever is lower, in lieu of the passenger vehicle scrapped by the owner in the last six months, stated the Ministry of Road Transport and Highways in a release.
Mercedes Benz India is also offering a flat discount of Rs 25,000 on top of all current discounts. The details of the scrapped car will need to be linked in the Vahan system.Voluntarily, companies can continue offering additional savings on specific models. The individual passenger vehicle manufacturers can choose to offer their vehicle on only the designated models within their portfolio.Since only the car is being scrapped and not exchanged, only the scrappage discount is applicable, the Ministry of Road Transport and Highways said in a statement.
Tata Motors, Volvo Eicher Commercial Vehicles, Ashok Leyland, Mahindra & Mahindra, Force Motors, Isuzu Motors and SML Isuzu offered the following discounts: 3% of ex-showroom price for commercial cargo vehicles that have a GVW (gross vehicle weight) of over 3.5 tonnes, provided that it is scrapped by the owner in the last 6 months, and 1.5% of ex-showroom price for those which have a GVW of less than 3.5 tonnes.
These included a 2.75 per cent discount on the ex-showroom price for scrapping a commercial cargo vehicle (with a gross weight of over 3.5 tonnes) and 1.25 per cent discount on the ex-showroom price against a traded registration certificate (CD) for scrapping a commercial cargo vehicle (with a gross weight less than 3.5 tonnes). The plan may also be applied to vans and buses.
Mahindra Thar 5-Door To Be Called Thar Roxx, Launch Date Revealed | Watch Teaser The Ministry of Road Transport and Highways has implemented the Vehicle Scrapping Policy or the Voluntary Vehicle Modernisation Program, in the country through a chain of RVSFs and Automated Testing Stations (ATS) acting as a structure for merchant scrapping of polluting vehicles and their replacement over time.
Currently, over 60 RVSFs operating in 17 states and UTs and over 75 ATSs across 12 states and UTs are in operation in the country with many more in the pipeline.Of measures discussed include the phasing out of privately-owned commercial and passenger vehicles as part of a larger plan to replace the older units in India’s passenger car fleet with new-gen, less polluting models.
Recognizing the importance of both Fleet Modernisation and Circular Economy, several Commercial and Passenger Vehicle Manufacturers have agreed to offer Discounts for a limited period in lieu of CD (Scrappage Certificate).The official statement said manufacturers of passenger and commercial vehicles have also offered discounts for a limited period of two and one year respectively.These savings will also further drive the scrappage of older cars, ensuring that cleaner, safer and more effective vehicles are on the road, the statement added.