Commercial vehicle manufacturers are willing to offer discounts for a period of two years and passenger vehicle manufacturers are willing to offer discounts for a period of one year, an official statement announced
Union Minister Nitin Gadkari on Tuesday met the Society of Indian Automobile Manufacturers (SIAM) CEO’s Delegation where major commercial and passenger vehicle manufacturers agreed to offer discounts against a Scrappage Certificate.
Commercial vehicle manufacturers are willing to offer discounts for a period of two years and passenger vehicle manufacturers are willing to offer discounts for a period of one year, an official statement announced.
At the meeting, held at Bharat Mandapam, Gadkari congratulated and expressed his gratitude to the manufacturers who have joined the Vehicle Fleet Modernization Programme and encouraged others to follow their lead.
“In response to Gadkari’s recommendation, several leading commercial and passenger vehicle manufacturers have agreed to offer discounts on new vehicle purchases when older vehicles are scrapped with a valid Certificate of Deposit. This initiative is a significant step forward in advancing our Circular Economy, promoting the use of cleaner, safer, and more efficient vehicles on our roads,” an official statement added.
“These discounts will further incentivise scrapping of end of life vehicles, thereby “ensuring plying of safer, cleaner and efficient vehicles on the roads”, it said.
PASSENGER VEHICLES
Passenger vehicle manufacturers 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 offered discount of 1.5% of the ex-showroom price of new car or Rs 20,000, whichever is less, against the passenger vehicle scrapped by the owner in the last six months.
“Details of the scrapped vehicle to be linked in the Vahan system. Companies may voluntarily offer additional discounts on identified models. Individual passenger vehicle manufacturers may have the liberty to extend this discount only on the identified models, within their vehicle portfolio. As the car is not getting exchanged but only scrapped, hence between exchange and scrap discount, only scrappage discount will be applicable,” it added.
Mercedes Benz India has offered a flat discount of Rs 25,000, which will be over and above all existing discounts.
COMMERCIAL VEHICLES
Commercial vehicle manufacturers Tata Motors; Volvo Eicher Commercial Vehicles; Ashok Leyland; Mahindra & Mahindra; Force Motors; Isuzu Motors and SML Isuzu offered discount equivalent to three per cent of the ex-showroom price for a commercial cargo vehicle with more than 3.5 tonne GVW scrapped by the owner within the past six months; and a discount equivalent to 1.5 per cent of the ex-showroom price for a commercial cargo vehicle with less than 3.5 tonne GVW scrapped by the owner within the past six months.
“Discount to be offered to a person buying a vehicle against a Traded Certificate of Deposit of a Scrapped Commercial Vehicle would be equivalent to 2.75% of the Ex-Showroom Price for scrapping a commercial cargo vehicle with more than 3.5 tonne GVW; and a discount equivalent to 1.25% of the Ex-Showroom Price Against a Traded Certificate of Deposit for scrapping a commercial cargo vehicle with less than 3.5 tonne GVW,” the statement said.
This scheme may also be considered for buses and vans, it said.
