Planning To Scrap Old Vehicles? Auto Manufacturers To Offer Discount: Nitin Gadkari

In a latest move that will bring huge relief to those planning to scrap their old vehicles, top commercial and passenger vehicle manufacturers on Tuesday decided to provide them discounts on buying new vehicles, said Nitin Gadkari, Union Minister for Road Transport and Highways on August 27, 2024 in New Delhi.

The Union Minister for Road Transport and Highways presided over a session of the (Society of Indian Automobile Manufacturers) SIAM CEO's delegation meeting at Bharat Mandapam, New Delhi, where he addressed crucial problems that the automobile industry faced.

The move seeks to promote the transition to cleaner, safer, and more efficient vehicles. The latest initiative will also ensure that roads are populated with latest and more efficient models.

Nitin Gadkari took to his social media platform X (formerly Twitter) saying, "I am pleased to report that, in response to my recommendation, several commercial and passenger vehicle manufacturers have agreed to offer discounts for the purchase of new vehicles against the scrapping of older vehicles with a valid Certificate of Deposit. This initiative will significantly advance our Circular Economy efforts, ensuring that cleaner, safer, and more efficient vehicles are on our roads."

Nitin Gadkari congratulated and expressed his gratitude to the automobile manufacturers who took the initiative to take part in the Vehicle Fleet Modernization Programme.

Earlier, as per a report published in The Times of India, auto majors expected to provide 1.5-3.5% discount to buyers who are planning to scrap their old vehicles to buy a new vehicle.

Leading luxury car manufacturers are reportedly planning to offer a discount of nearly 25,000 while others may put a ceiling on the maximum discount.

As part of the latest scheme, leading commercial vehicle manufacturers will be offering discounts for nearly 2 years and passenger vehicle manufacturers will provide discounts for 1-year tenure.

For commercial vehicles, leading makers like Volvo Eicher Commercial Vehicles, Tata Motors Ashok Leyland, including others plan to provide a 3% discount. Meanwhile, if customers decide to use a Traded Certificate of Deposit from a scrapped commercial vehicle to buy new vehicles, they can get discount of 2.75% of the ex-showroom price.