New Delhi. Major commercial and passenger vehicle companies will offer discounts ranging from 1.5 to 3 per cent on purchase of new vehicles in exchange for scrapping old vehicles before the festivals. The vehicle manufacturers agreed to this in a meeting with Union Road Transport and Highways Minister Nitin Gadkari, an official statement said on Tuesday.
The statement said that this initiative is an important step towards accelerating the optimal use of resources (circular) economy in the country and promoting the use of cleaner, safer and more efficient vehicles. Gadkari chaired a meeting with a delegation of SIAM (Society of Indian Automobile Manufacturers), the apex body of automobile companies, at Bharat Mandapam on Tuesday.
The statement said, “During the talks, positively considering the advice of the Minister of Road Transport and Highways and recognizing the importance of modernization 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 (scrapage 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 scrapping of old vehicles. This will ensure safer, cleaner and more efficient vehicles on the roads. 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 discounts.
According to the statement, passenger vehicle manufacturers such as 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 vehicles. A discount of 1.5 percent of the showroom price or Rs 20,000 (whichever is less) will be given on getting a new car in exchange for the passenger vehicle scrapped by the car owner in the last six months.
Commercial vehicle manufacturers such as Tata Motors, Volvo Eicher, Ashok Leyland, Mahindra & Mahindra, Force Motors will offer discounts equivalent to three per cent of the showroom price for commercial cargo vehicles weighing more than 3.5 tonnes. Sources said that top officials of the automobile industry attended the meeting. These include SIAM President Vinod Agarwal, Maruti Suzuki India Managing Director and Chief Executive Officer Hisashi Takeuchi, Tata Motors Executive Director Girish Wagh, Ashok Leyland Managing Director and CEO Sheenu Agarwal and TVS Motor Company CEO K N Radhakrishnan.